Alibaba looks for stock split before Hongkong listing

June 17, 2019 | Investopaper

Alibaba, the e-commerce giant based on China, has proposed to go for a one-to-eight stock split. This would increase the number of shares available to investors. The number of shares will increase from the existing 4 billion to 32 billion if the proposal comes into effect.

A few weeks earlier, it was reported that the company is looking for an IPO offering in Hongkong that could raise $20 billion to the company. The company is going for a stock split in order to catalyze the fundraising activities.

The company will conduct its AGM on July 15, 2019, and if the shareholders approve the decision then the stock split will come into effect.

The statement released by the company further said: “Among other reasons, the one-to-eight share subdivision will increase the number of shares available for issuance at a lower per share price, and the Board of Directors believes that this will increase flexibility in the Company’s capital raising activities, including the issuance of new shares,”


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