Wednesday, November 20, 2019

Alibaba Hong Kong IPO Listing With Interesting Fact

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.


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.

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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:

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)