Alibaba has announced it will become duel-primary listen on both the New York Stock Exchange (NYSE) and Hong Kong Stock Exchange (HKSE).
The ecommerce behemoth released a statement which read: “Alibaba Group Holding Limited today announces that its board of directors has authorised the Company’s management to apply for a primary listing on the Main Board of Hong Kong Stock Exchange.”
Once the listing process has been completed, by the end of 2022, Alibaba will become a dual-primary listed company on the NYSE in the form of American Depositary Shares (“ADSs”) and on the HKSE in the form of ordinary shares.
Currently, the company a secondary listing on the main board of the HKSE and will apply for a primary listing status in accordance to the rules and regulations of the exchange.
The Company‘s ADSs listed in the United States and the shares listed in Hong Kong are fungible, and investors can continue to choose to hold their shares in the form of ADSs traded on the NYSE or ordinary shares traded on the HKSE.
“We have received approval from the Board to apply to add Hong Kong as another primary listing venue, in the hopes of fostering a wider and more diversified investor base to share in Alibaba’s growth and future, especially from China and other markets in Asia,” Alibaba Group Chairman and chief executive officer Daniel Zhang.
“Hong Kong and New York are both major global financial centers, with shared characteristics of openness and diversity. Hong Kong is also the launch pad for Alibaba’s globalization strategy, and we are fully confident in China’s economy and future.���
Alibaba hopes that the move will allow it to “broaden its investor base and facilitate incremental liquidity, in particular expand access to China- and other Asia-based investors.”
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