Alibaba share price up 1.14% after its proposed stock split, reported Hong Kong listing
The share split will increase the flexibility in the firm’s capital raising activities, including the issuance of new shares, Alibaba said.
Tech giant Alibaba Group has proposed for a one-to-eight stock split that will increase the number of its ordinary shares to 32 billion, the firm said in a filing that was uploaded on Monday.
The share split will increase the flexibility in the firm’s capital raising activities, including the issuance of new shares, Alibaba said, which ties to the second listing the firm is said to have filed last week through a confidential exchange application with Hong Kong.
The proposal of the share split will be discussed and placed to a vote at its annual general meeting in Hong Kong on July 15. Alibaba’s board has already approved the share split and is recommending for shareholders to be aligned with the executive’s views.
Alibaba debuted on the New York Stock Exchange on September 18, 2014, at US$68 per share. The listing was the biggest United States (US) Initial Public Offering (IPO) in history, larger than US tech firms Google, Facebook, and Twitter combined.
Since late last month, Alibaba was said to have been eyeing for a listing in Hong Kong, a move that would help bring its stock to investors closer to home. The firm is expected to file for as much as US$20 billion in the new listing.
In the Hong Kong offering, the company will seek to preserve its governance system, where a partnership of top executives has rights including the ability to nominate a majority of board members, sources told media outlets.
Alibaba’s share price: technical view
Shares of Alibaba rose to close Monday’s session higher by 1.14% or US$1.81, at US$159.91.
Pre-market trading on Tuesday was light, with the stock higher by 0.30% or US$0.48, at US$160.39.
Year-to-date, Alibaba’s shares have risen by 16.9%, from US$136.70 on January 2. The stock is still 23.3% lower than the peak price of US$208.00 on June 15, last year, before the trade tensions between the US and China worsened in the later part of the year.
The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.
Act on share opportunities today
Go long or short on thousands of international stocks with CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
