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Alibaba shares surge more than 6% on Hong Kong debut

Alibaba described its decision to list in Hong Kong as a vote of confidence in the embattled city's markets”

Shares in Chinese online retail giant Alibaba soared more than six percent on their Hong Kong debut Tuesday, after raising at least $11 billion in the city's biggest IPO in nearly a decade.

Alibaba, which already is listed in the United States, had set the price for each share at HK$176, but the stock jumped 6.25 percent to HK$187 as it began trading on the Hong Kong exchange.

The company called the listing a vote of confidence in the city which has been wracked by months of sometimes violent protests and the China-US trade war, which have sent the local economy into recession.

Asia's most valuable company has said previously it could raise almost $13 billion via the initial public offering, which was originally planned for the summer but was pushed back due to the headwinds hitting the city.

Alibaba's list price came in below an HK$188 indicative ceiling originally announced.

With 500 million shares offered to investors, the company has said it would raise HK$88 billion ($11 billion). Eight is considered an auspicious number in China.

If it chooses to use its over-allotment option to sell a further 75 million shares, Alibaba could bring in HK$101.2 billion ($12.9 billion).

By: AFP
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