Facebook's Initial Public Offering - An IPO Case Study
Alibaba Group has priced its stock offering on the Hong Kong exchange at HKD 176 per share, both for the retail and institutional parts of the offer. Based on the ratio of eight shares per ADS, this equals a price of USD 180 per ADS, a small discount on its recent trading price.
Alibaba said the price was set taking into account factors such as the ADS closing price on 19 November, of USD 185.25.
The shares are expected to start trading in Hong Kong on 26 November, subject to final approval from the exchange.
The price puts the gross proceeds for the company at HKD 88 billion (USD 11.2 billion).
This excludes the over-allotment option for another 75 million shares, which can be exercised in the next 30 days.
The company said it plans to use the proceeds for the implementation of its strategies to drive user growth and engagement, empower businesses to facilitate digital transformation, and continue to innovate and invest for the long term.