Alibaba Group Holding Limited (BABA) made an impressive homecoming debut at the Hong Kong Stock Exchange on Tuesday (Beijing time).
Price Action
The Chinese e-commerce giant’s shares opened at about $23.89, 6.25% higher than the $22.49 it priced its shares at the initial public offering.
Alibaba’s shares surged as high as $24.13 in early trading. Its shares traded at $24.02 at press time, a 6.82% gain compared to the IPO price.
The Hangzhou-based company’s shares last closed at $190.45 in New York on Monday.
Homecoming For Alibaba
Alibaba raised $11 billion in the Hong Kong IPO this month, selling 500 million ordinary shares at approximately $22.49 each.
The company launched its IPO in spite of the political and economic unrest created in the city by ongoing protests against the Beijing administration.
“We came home. We came back to list in Hong Kong,” Alibaba CEO Daniel Zhang said at the launch, according to Bloomberg. “It helped make up for our regret five years ago.'’
Analysts that talked to Bloomberg said that Alibaba’s entry in Hong Kong could see more companies investing more money in the city, especially its Chinese rivals Tencent Holdings Limited and Baidu Inc.
Comments
Log in or sign up to join the conversation.