Alibaba said to pick CICC, Credit Suisse to lead Hong Kong share sale
- Offering could raise as much as US$20 billion, though precise target has not been finalised
- Transaction could bolster city’s status as destination for Chinese tech listings and boost Alibaba’s cash pile as it wages subsidy war with Meituan Dianping
Chinese internet giant Alibaba Group has picked China International Capital Corp and Credit Suisse Group to lead a planned Hong Kong share sale, people familiar with the matter said.
The online retailer is in discussions with other investment banks seeking a role on the offering, according to the people, who asked not to be identified because the information is private. Alibaba plans to file a formal listing application with the Hong Kong stock exchange as soon as the next few weeks, the people said.
Alibaba is the owner of the South China Morning Post.
The offering could raise as much as US$20 billion, though Alibaba has not finalised a precise fundraising target, the people said. A deal that size would be Hong Kong’s largest share sale since 2010, according to data compiled by Bloomberg.
The transaction could bolster the city’s status as a destination for Chinese tech listings and boost Alibaba’s cash pile as it wages a costly war of subsidies with Meituan Dianping in food delivery and travel.
The company will seek to preserve its existing governance structure, where a partnership of top executives has rights including the ability to nominate a majority of board members, one of the people said.