×

Alibaba Heading for Hong Kong Share Sale This Month (Report)

China’s e-commerce and entertainment giant Alibaba is understood to be back on track with a secondary listing of its shares in Hong Kong. The listing might also raise up to $15 billion of additional capital.

The group conducted a record breaking IPO in 2014 on the New York Stock Exchange and currently enjoys a market capitalization of $488 billion.

A report by news agency Reuters, citing unnamed sources, Friday said that the sales process would likely begin in Hong Kong from Nov. 25. Contacted by Variety, Alibaba offered no comment.

From a political context, the share listing could be seen as a sign of a thaw in the U.S.-China trade war which has been damaging international trade for over a year now. It might also be seen as a vote of confidence in beleaguered Hong Kong, which has suffered from five months of disruptive civil protests against the city’s government and perceived influence from Beijing in the once free-wheeling city’s business and social affairs. Hong Kong returned to Chinese sovereignty in 1997 but has operated its own systems in matters including legal system, language and currency.)

Alibaba recently reported robust financial results. It beat market expectations with earnings per share of $1.83 in the second quarter of its financial year. The group also beat financial analysts’ expectations of its revenue, with a 40% year-on-year increase to RMB119 billion (US$16.7 billion).

Group profits in the three months from July to September were $9.90 billion (RMB70.7 billion) shown on the GAAP accounting standard and including gains from its stake in Ant Financial. Expressed in a non-GAAP fashion and without the one-off gains, profits in the quarter amounted to $4.58 billion (RMB32.8 billion), an increase of 40% year-over-year.

The healthy numbers were notably driven by a 64% increase in revenues for cloud computing, as China’s economy becomes increasingly digital.

More Biz

  • Recording Academy President/CEO Deborah Dugan participates

    Executive Assistant Preparing Lawsuit Against Ousted Grammy Chief

    In the latest twist in the increasingly bitter exit of Deborah Dugan from the Recording Academy after just five months, the ousted president/CEO is about to face a lawsuit from her former assistant, Claudine Little, who has retained former Harvey Weinstein/ Charlie Walk attorney Patty Glaser to represent her, two sources tell Variety. The news was [...]

  • Two Rivers Media Buys Out Parent

    Two Rivers Media Buys Out Parent Kew Media Group's Stake In Business

    Two Rivers Media has bought out parent group Kew Media Group’s minority stake in the business. Formed by former STV Productions head Alan Clements in January 2019, the production outfit behind Channel 5’s recent “Susan Hill’s Ghost Story” launched with the backing of Kew, Noble Grossart Investments and Channel 4’s Indie Growth Fund. Noble Grossart [...]

  • Grammy Awards 60th Annual Grammy Awards,

    Recording Academy Paid Millions Annually to Outside Law Firms

    Among the concerns listed in a memo sent to the Recording Academy’s head of HR by president/CEO Deborah Dugan before she was placed on administrative leave Thursday was an item about the organization’s “exorbitant and unnecessary” legal fees to outside law firms, according to sources familiar with the document. According to the most recent 990 [...]

  • Chuck D of Public EnemyGods of

    Public Enemy’s Chuck D Slams Grammys Over Deborah Dugan Ouster

    Chuck D, frontman of Public Enemy — who are receiving the Lifetime Achievement Awards at the Grammys next week — posted a long statement on Instagram criticizing the Recording Academy over its sudden ousting of new president/CEO Deborah Dugan yesterday. Dugan, who had been in the job only five months, was placed on administrative leave after [...]

  • Any Given Wednesday With Bill Simmons

    Spotify in Talks to Acquire Bill Simmons' The Ringer: Report

    Spotify is in early talks to acquire The Ringer, the digital content and podcast network launched by ESPN alum Bill Simmons in 2016, according to a report in the Wall Street Journal. A representative for Spotify declined to comment on the report. Reps for Ringer did not immediately respond to a request for comment. Spotify’s [...]

  • Deborah Dugan arrives for the 20th

    Deborah Dugan's Recording Academy Ouster Follows Multiple Tussles With Board

    “Change is afoot,” Deborah Dugan said more than once during interviews with Variety in the weeks before her shocking removal from her post as president/CEO of the Recording Academy after just five months on the job. During those conversations, Dugan spoke of changes she planned to make in the Academy’s staffing organization, its Board of [...]

  • Weinstein Trial

    Does Harvey Weinstein's Jury Selection Strategy Make Any Sense?

    Harvey Weinstein’s defense team appeared to have a strategy for jury selection: keep white women off the panel. They didn’t put it that way, because picking jurors based on race or gender is illegal. But on Thursday and again on Friday, prosecutor Joan Illuzzi accused the defense of using its peremptory challenges to systematically exclude [...]

More From Our Brands

Access exclusive content