Alibaba’s plans to go public have caused rumors to swirl for months. Now, it’s finally upon us. The business-to-business portal will be listed in Hong Kong on November 6 in what could be China’s biggest tech IPO to date.
An indicator of the keen investor interest in this offering came when its price range was raised on October 22 to HK$12-13.50 (US$1.55-1.74) a share. The original price range was HK$10-12 a share. That means Alibaba could now raise up to US$1.49 billion.
Institutions will take up 85% of the 858.9 million shares offered, with Yahoo subscribing for US$100 million worth of them. The US firm is a 39% stake-holder in Alibaba’s parent company.
Another Chinese tech firm, telecom equipment maker Huawei, is also making its mark felt abroad. It announced plans in early October to increase its stake in American network equipment manufacturer 3Com to 21.5%.
Although Huawei is already a global player, it’s still a privately held company. The officials at the Shenzhen Stock Exchange must have taken note, because they have made plans to launch a new growth enterprise board that targets Chinese high-tech firms.
The board is part of a national plan to accelerate the country’s tech sector, and it includes US$10.7 billion of investment from China Development Bank.