ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
Markets

Alibaba shares rise 4.5% in gray market ahead of mega IPO

Latest offering marks the largest share sale in Hong Kong since 2010

Alibaba's shares are set to debut on the Hong Kong Stock Exchange's main board on Tuesday.   © Reuters

HONG KONG (Nikkei Markets) -- Shares of Chinese e-commerce major Alibaba Group Holding climbed 4.5% at a gray market venue in Hong Kong on Monday ahead of their debut on the stock exchange's main board on Tuesday.

The stock closed at 184 Hong Kong dollars on a platform run by Phillip Securities Group, compared with an offer price of HK$176. It rose as high as HK$185 during the session. About 1.7 million shares changed hands.

Alibaba's American depository shares had risen 1.04% to $186.78 in New York on Friday, the equivalent of HK$182.81 at current exchange rates. Each ADS represents eight shares.

Alibaba had raised HK$88 billion ($11.3 billion) in gross proceeds after its 500-million-share offering was priced at HK$176 each, compared with the maximum indicative price of HK$188. The company could raise more money from the issue if an overallotment option for 15% of the base offering is exercised.

The offering is the largest share sale in Hong Kong since 2010, according to Bloomberg.

At the company's last traded ADS price, Alibaba had a market capitalization just shy of $500 billion -- higher than that of rival Tencent Holdings. With a capitalization of $413.3 billion, Tencent is currently the most valuable stock listed in Hong Kong.

Alibaba's shares are set to debut on the Hong Kong Stock Exchange's main board on Tuesday under the stock code 9988. CICC and Credit Suisse are joint sponsors for the offering.

-- Benny Kung

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 30th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media