The documents revealed that the Primary Conversion would become effective before 2022 ends.
Alibaba has finally gotten approval for a primary listing in Hong Kong, achieving its target for a dual primary listing. Currently, the company trades on the New York Stock Exchange (NYSE) and the Hong Kong Stock Exchange (HKSE). While the US listing is primary, its shares in Hong Kong are secondary. On 26th July, Alibaba revealed its desire despite having a primary listing in Hong Kong while maintaining its NYSE status. The board of directors approved the decision and has applied for the process to be complete by year-end.
According to a new filing, Alibaba said the Hong Kong Stock Exchange had acknowledged its request. The company had requested to convert its locally traded shares from their current secondary status to primary listing. In response, the stock exchange has issued its Primary Conversion Exchange Acknowledgement to the e-commerce company’s Change of Listing Status Guidance Letter.
Alibaba Set for Primary Listing in Hong Kong by Year-End
The documents revealed that the Primary Conversion would become effective before 2022 ends. The company said it would announce the specific date as time unfolds. When Alibaba begins to trade on primary listings in Hong Kong and the US, the stock marker “S” would be removed from its stock short name on HKSE.
Speaking on the reason for its primary conversion in Hong Kong, Alibaba said in the filing:
“We expect that the Primary Conversion will allow us to broaden our investor base and facilitate incremental liquidity, and in particular expand access to China – and other Asia-based investors. Accordingly, our Board is of the view that the Primary Conversion is in the interests of the Company and those of our Shareholders as a whole.”
Following the announcement, Alibaba’s shares in Hong Kong are currently up 1.07% to HK$89.75.
The HKSE may request the e-commerce to delay its Primary Conversion Date if it cannot demonstrate full compliance with the exchange’s rules and there is no waiver. Alibaba is about to reach another milestone with its second primary listing in Hong Kong. It is about to be the first large company to list primarily on NYSE and the HKSE. The e-commerce company also had the biggest initial public offering (IPO) when it went public in 2014.
Before the approval, CEO Daniel Zhang pointed to broader and more diversified investor base as a reason for the move. Zhang noted that the New York and Hong Kong markets are major global financial centers. He added that the company remains confident in China’s economy and future as Hong Kong is the launch pad for its globalization.
On the New York Stock Exchange, Alibaba stock is up 0.29% to $91.10.
Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience.
Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
Subscribe to our telegram channel. Join
Ecosystem
Research
News Network
About