The transaction could bolster Hong Kong's status as a destination for Chinese tech listings and add to Alibaba’s cash pile.
Internet giant Alibaba Group has picked China International Capital (CICC) and Credit Suisse to lead its proposed Hong Kong share sale, South China Morning Post reported, quoting people familiar with the matter. Credit Suisse was the left-lead bank on Alibaba’s 2014 US initial public offering, which raised a record $25 billion.
While Alibaba has not finalized the actual fundraising target, estimates indicate that the offering could raise as much as $20 billion. A deal of this size would mean it would be Hong Kong’s largest share sale since 2010, according to data compiled by Bloomberg.
Cash Pile To Aid Customer Acquisitions
The Chinese online retailer is in discussions with other investment banks seeking a role on the offering, according to the people. Alibaba plans to file a formal listing application with the Hong Kong stock exchange as soon as the next few weeks, they added.
The listing will boost Alibaba’s cash pile as it wages a customer acquisition war with Meituan Dianping in food delivery and travel. Alibaba intends to preserve its existing governance structure, where a partnership of top executives has rights including the ability to nominate a majority of board members, according to the sources quoted.
