Alibaba Group Holding Ltd plans to launch a Hong Kong share offering to raise $10bn to $15bn in the final week of November, in a deal that could boost the Asian financial hub as it struggles with anti-government protests.
Such hearings are typically the first big step that kicks off new listings, with the stock's trading debut usually following within two months of that barring any unforeseen circumstances.
Alibaba has not said what it plans to do with the proceeds of the secondary listing, in which it aims to raise between $10 billion and $15 billion.
The United States-listed Chinese e-commerce giant is due to seek approval from Hong Kong's listing committee this week, two people with direct knowledge of the matter said.More news: As BJP Steps Back, Guv Invites Shiv Sena to Form Govt
A report by news agency Reuters, citing unnamed sources, Friday said that the sales process would likely begin in Hong Kong from November 25. Alibaba did not immediately respond to a request for comment.
The group conducted a record breaking IPO in 2014 on the New York Stock Exchange and now enjoys a market capitalization of $488 billion.
Alibaba is thought to have submitted their application discretely in June with hopes of listing in August, however the unrest in Hong Kong forced the company to postpone the process.
The return of this deal would cap a resurgent market in Hong Kong, where a series of big floats since September have helped the bourse operator, Hong Kong Exchanges & Clearing (HKEX) 0388.HK , become serious competition once more to the American players. Alibaba previously mentioned that the Company is looking to expand into less developed regions as its retail sales continue to slow down.More news: Father Of Atatiana Jefferson Dies After Suffering Heart Attack
A 2nd listing in Hong Kong would also curry favour with Beijing, which has sought to encourage its present-day and long run huge tech companies to record nearer to property after the decline of businesses this kind of as Alibaba and Baidu to Wall Road.
The deal is led by China International Capital Corp and Credit Suisse.
Alibaba's sales a year ago reached US$30 billion on Singles Day, which was more than three times as large as on Cyber Monday, the equivalent shopping day in the US. The group also beat financial analysts' expectations of its revenue, with a 40% year-on-year increase to RMB119 billion (US$16.7 billion).More news: Nintendo Switch has now sold over 10 million units in Japan