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Alibaba shareholders approve one-to-eight stock split, which could ease potential Hong Kong secondary listing
- Share split would give Alibaba greater flexibility for raising capital
- E-commerce company reportedly considering US$20 billion secondary offering in Hong Kong
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Alibaba Group Holding’s shareholders overwhelmingly approved a 1-to-8 split of the company’s US-listed stock, a move the company has said would give it greater flexibility for raising capital, including issuing new shares, according to a US securities filing late on Monday.
The approval comes as the company is reportedly considering a secondary listing of its shares in Hong Kong.
Bloomberg previously reported that Alibaba, the operator of the world’s largest e-commerce platform, is considering raising as much as US$20 billion in the offering.
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In addition to increasing the company’s flexibility for future capital-raising activities, the split would increase the number of shares available for issuance at a lower per-share price. Alibaba’s American Depositary Shares (ADS) closed on Monday on the New York Stock Exchange at US$173.50, up 2.6 per cent .
Alibaba is the parent company of the South China Morning Post.
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The announcement followed Alibaba’s annual general meeting in Hong Kong on Monday.
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