Alibaba Group has confirmed its listing on Hong Kong Stock
Exchange:
Stock
code: 9988.HK
IPO Price:
HKD176 (USD22.50 or SGD30.65)
Min lot
size: 100 shares
Listing
Date: 26 Nov 2019 (Tuesday)
1) Alibaba went public twice and both times its
price rose. Would it happen again?
The first time its price rose was in November 2007, when Alibaba
was on the aura of the B2B concept and listed in the Hong Kong Stock Exchange (HKSE),
the stock code was 1688.HK.
During that time, when the technology stocks
were popular, the stock price rose by 193% on the day of the
listing, which was the biggest increase in the stock market in the same
year.
However, the stock price was affected by the
financial crisis in 2008.
The second time its price rose was in September 2014, Alibaba was listed
in the New York Stock Exchange (NYSE), an opening price of 68 US dollars, the
stock code (BABA).
On the first day of listing, the stock rose by 38.07%,
a total market value of 231.4 billion US dollars!
It became the world's highest market value at that time, two major
Internet companies, second only to Google. Alibaba's share price has now
reached $185.
Disclaimer: Past performance does not guarantee future results
2) So now, many people have asked. Will this
happen again?
This listing is would be different from the previous two listings.
Because the first listing; it was the B2B business while the second listing was
the group's business.
However, this time, Alibaba has been listed on the New York Stock
Exchange NYSE for 5 years, every quarter has shown good results. All financial
information are easily available and transparent to the public. So, what would
be the investors’ expectations this
time? Let’s take a look below for some highlights
Alibaba has been known
for its impressive sales and earnings growth, with an annual growth rate of
over 20%. In this month's 11.11 Singles Day, more than $10 billion in sales was
created in the first hour alone.
3) Annual
revenue of Alibaba Group from 2010 to 2019 (in million yuan)
4) Will Alibaba become "king" of the
Hong Kong Stock Exchange?
The fact that Alibaba has returned to Hong Kong, it will possibly become
the highest market capitalization company listed on the Hong Kong Stock
Exchange (HKSE). The highest market value previously was Tencent.
From the perspective of market cap, once Alibaba is listed in Hong
Kong Stock Exchange, it will become "king" of the Hong Kong Stock
Exchange.
Alibaba ranks highest than Tencent as
of June 2019 (in billion U.S. dollars)
6) Why Alibaba want to return to the Hong Kong stock market, is it
because they are short of money?
Alibaba
is definitely not short of money. Although it has acquired a number of
companies, but the financial report still shows that it is "not short of
money."
According
to their latest FY2020 semi-annual report as of September 30, there isstill
234.1 billion yuan available cash in
Alibaba's account.
The
operating cash flow is also very healthy, with a net inflow of hundreds of
billions of operating cash flow each year, which is the contribution of China's
market.
Source: alibabagroup.com
7) Many of you asked how to subscribe for
Alibaba Hong Kong IPO?
a) Only Hong Kong Citizens can subscribe to
Alibaba IPO via online
b) For foreigners, “High Net Worth” clients meeting
certain criterias may be able to apply
c) For foreign Retail Investors, you may
participate in the Alibaba Hong Kong Pre-IPO 1 day before its official listing.
8) What is Hong Kong Pre-IPO?
A channel provided by Phillip Securities for clients
to trade the Hong Kong shares 1 day before their
official listing in the Hong Kong Exchange.
Phillip Securities is the first broking house in
Singapore and Hong Kong to offer clients the Pre-IPO trading channel.
Disclaimer: The performance of stocks in the
Pre-IPO trading session should not be considered as an indicator of its price
and demand in the official trading session.
Source: Source:
globalmarkets.poems.com.sg/markets-we-offer/hong-kong-pre-ipo
9) When can I trade Alibaba Hong Kong Pre-IPO?
• Trading date for HK Pre-IPO: 25
Nov 2019 (Monday)
• Trading hours for HK Pre-IPO: 4.15pm-6.30pm
• Min lot size: 100 shares
• Actual Listing Date: 26 Nov 2019
(Tuesday)
Source: Source:
globalmarkets.poems.com.sg/markets-we-offer/hong-kong-pre-ipo
10) What are the Brokerage & Other Fees
involved?
For an example:
Alibaba (8899.HK) has confirmed it min lot size is 100 shares
For simplicity, refer to below
calculation, let’s assume the Pre-IPO price started trading at HKD200
a) 100 shares x HKD200 = HKD20,000 (USD2,555 or
SGD3,483)
b) 200 shares x HKD200 = HKD40,000 (USD5,110 or
SGD6,966)
Above examples are not inclusive of brokerage
& other fees
11) Where & How can I trade Alibaba Hong
Kong Pre-IPO on 25 Nov 2019?
aa) You must have a Poems trading account
bb) If you are using Poems prepaid account, make
sure you fund the account first
Below show you how to trade HK Pre-IPO with
example from the previous HK Pre-IPOs i.e Haidilao & Xin
Yuan.
By Caleb Gan (Phillip Securities Stock Broker
& CFD Specialist)
