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Home / zimbabwe / Alibaba offers splitting of shares prior to Hong Kong IPO – TechCrunch

Alibaba offers splitting of shares prior to Hong Kong IPO – TechCrunch



Alabama is strongly associated with a public listing in Hong Kong that can happen in the third quarter and raise up to $ 20 billion. The company kept silent about these rumors, but failed to miss a serious hint after announcing plans to split the stock.

Files uploaded today (but originally published on Friday) announced a proposal to split shares from one to eight.

Shareholders are invited to vote on the proposal before the annual general meeting of the company on July 15th. The initiative has already been approved by the board of Alibaba, which recommends shareholders to follow suit.

Particularly interesting part of the filing is where Alibaba explains the reasons for the division of shares.

"The Board of Directors proposes that the shareholding division increase the Company's flexibility in future activities on the capital market. Among other reasons, the "one to eight" stock division will increase the number of shares available for issuing at a lower price per share, and the Board of Directors believes that this will increase the flexibility of the company's fundraising activities, including the issuance of new shares, "said the filing.

This seems to clear the way for the second company announcement, which became public at a record US IPO, which raised over $ 20 billion in 2014.

Alibaba declined to give further comments when we asked.

Last week's reports show that China's e-commerce giant has already filed initial registration records that will become the largest such stock exchange on the Hong Kong Stock Exchange. The city has become a destination for Chinese public procurement technology as the relaxed entry rules came into force two years ago. Ironically, the lack of flexibility was cited as the main reason why Alibaba chose the United States for Hong Kong for its 2014 list.

Technology firms that have become public in Hong Kong include Razer, Xiaomi, Tencent Chinese literature, and the application company of the peasant rural Meitu. Despite the supernatural, some of them have been protected from Hong Kong's suitability for technology companies that are often not profitable when registering. Indeed, Razer CEO Min Liang Tan has warned that "United States [public markets] probably more familiar with technology companies than with Hong Kong's small investors.


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