Chinese e-commerce giant Alibaba Group Holdings (NYSE: BABA) has selected China International Credit Corp. and Credit Suisse to lead the company’s second IPO, on the Hong Kong Stock Exchange. The IPO filing is expected to come in the next two weeks.
Although Alibaba hasn’t set a specific fundraising ticket for the offering, sources say that they are expecting to raise $20 billion U.S. — which would make it the largest share sale in Hong Kong since 2010. Credit Suisse handled Alibaba’s U.S. IPO, which raised $25 billion U.S. for the company.
Bloomberg reported that the money raised in Hong Kong is intended to help Alibaba “diversify funding channels and boost liquidity,” according to sources it did not name. Alibaba aims to file a listing application confidentially as early as the second half of 2019, according to the report.
Hong Kong introduced dual-class tech stock listings last year, a major appeal that helped attract tech darlings like smartphone maker Xiaomi, food delivery service Meituan-Dianping, and high-end recruitment leader Liepin.
Last week, Alibaba’s largest shareholder SoftBank booked a pretax profit of more than $11 billion U.S. for selling part of its stake in Alibaba, completing a deal announced three years ago. SoftBank still holds about 26 percent of Alibaba after the deal.