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ALIBABA IPO - 9988 HK

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  1. #1

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    ALIBABA IPO - 9988 HK

    Pricing has been set around $188 per share. Board lot 100.

    What is considered a successful IPO in HK - for ego reasons primarily? 10x oversubscription?

    Anyone want to lay down bets on how oversubscribed this offer will be?

    What will trading be like on day one .. I suspect it will be southbound.

    Disclaimer: I'm not interested at this moment and point in time.


  2. #2

    I was interested but at the lucky price of HKD188, the IPO is price is above what the US ADRs are trading at.

    Also, I'm not a fan of weighted voting rights (unless weighted in my favour of course) and, since I live off the income from my investments, I end to prefer companies which pay dividends which Alibaba does not.

    No predictions on where it will trade at.

    Morrison, jrkob, jack55 and 1 others like this.

  3. #3
    Original Post Deleted
    Given that it's a secondary listing in a company that many HK investors would already have invested, as well as being a very large IPO, I agree that 10x over subscription would be surprising.

    HIBOR is already moving up.

  4. #4

    Incidentally, HKD188 is stated as being the maximum offer price.

    shri and Coolboy like this.

  5. #5

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    How does one get their hands on Baba IPO shares? From what I have read Baba would first to be included in the south bound trading stock connect scheme for mainland investors to be able to purchase Baba. That could send the stock up quite a bit down the road.


  6. #6
    Quote Originally Posted by makeITcount:
    How does one get their hands on Baba IPO shares? From what I have read Baba would first to be included in the south bound trading stock connect scheme for mainland investors to be able to purchase Baba. That could send the stock up quite a bit down the road.
    The HK public can apply in the IPO in the usual manner. Most (?) banks offer IPO subscription services. If you miss out in the IPO, you would be able to buy in the secondary market on HKEX after listing.

    Not sure how long after listing before it's included in the list of south bound trading stocks.

  7. #7

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    thanks for sharing, I am aware of this article and the perceived dangers and pitfalls of investing into Baba. I am holding a bunch of ADRs already (@~130USD) and I see massive upside potential with BABA down the road once Mainland Chinese investors can get their hands on their shares. Only time will tell and even the US can have rotten eggs in their midst, Remember Enron?


  8. #8

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    As long as you're not worried... go for it. I am sure at some point in its lifecycle, it will remain higher than its IPO price allowing you to cash out. Would be interesting to hear how much got allocated to you, if you're doing the IPO loan / subscription thing.

    traineeinvestor likes this.

  9. #9

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    Thx Shri
    i have not seen a way how to subscribe I am with HSBC and are not necessarily jumping on the IPO bandwagon . I can wait and buy later when I feel the price is right. My current average price is way lower with my ADRs but Chinese investors understandAlibaba better than their US counterparts. I feel there is a lot of negativity in the US toward China stocks in particular Baba. That’s where is see potential besides it’s an amazing business model with lots of untapped opportunities down the road not only in SE Asia and India but there could be great synergies with companies like Amazon. Anyways


  10. #10

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    May be

    Alibaba is due to officially price the deal later on Wednesday but three sources said investors had been told HK$176 was likely to be the end number.
    also

    Hong Kong’s army of small investors have welcomed the Alibaba deal, subscribing for so many shares they will be allotted the maximum 10% of the deal they could have got, three sources said.

    Hong Kong operates a ‘clawback’ system where heavy oversubscription from small investors - in this case, at least 20 times the original 2.5% offered to retail - can result in them getting a greater share.

    The numbers imply they have collectively put up at least $5.6 billion in the hope of getting shares in the Chinese ecommerce champion.
    From:

    https://www.reuters.com/article/us-a...-idUSKBN1XT2W0

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