Alibaba launches $13.4 billion Hong Kong listing to fund expansion

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Alibaba is poised to sell its shares in a Hong Kong secondary listing, a vote of confidence that the company could overcome negative sentiment in the city's financial markets caused by months of street protests

HONG KONG - Chinese e-commerce giant Alibaba Group launched the share sale for its Hong Kong listing on Wednesday, braving unrest in the global financial hub to try to raise up to $13.4 billion to fund its expansion plans.

It will also spend more on developing Youku, which Alibaba says is one of the leading online video platforms in China. The company also intends to increase its investment in cloud computing and machine learning, the prospectus shows.The Hangzhou-based company said Alibaba Cloud was currently the world’s third largest Infrastructure as a Service business, by U.S. revenue in 2018, according to a study by Gartner.

Analyst James Cordwell from Atlantic Equities echoes the sentiment and said that an increasing likelihood of a deal in the U.S.-China trade war in the next few weeks helped the company undertake the listing now.

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