According to the public information, 500 million new ordinary shares will be issued in this offering, and Alibaba Groups ordinary shares will be listed on the main board of the stock exchange of Hong Kong Limited (SEHK), with the stock code of 9988. At the same time, the ADSS representing Alibaba Groups common stock will continue to be listed and traded on the New York Stock Exchange (NYSE), each representing eight ordinary shares.
After the Hong Kong listing, Alibaba Groups Hong Kong listed shares and NYSE listed American Depository shares will be fully convertible. In addition, Alibaba group is expected to grant over allotment equity to International Underwriters, which can require the group to issue up to 75 million additional shares in total.
In terms of price, the offering price of this public retail offering (the public retail offering price) will not be higher than HK $188.00 per offering share (the maximum public retail offering price). Considering the closing price of American Depository stocks traded on or before the last trading day and the investor demand during the roadshow, the international offering price will be determined on November 20, 2019 in Hong Kong time.
For the listing, Alibaba said that the group plans to use the funds raised from the global offering to implement its strategy, including driving user growth and participation, helping enterprises to achieve digital transformation and upgrading, as well as continuous innovation and investment in the long-term future; at the same time, listing in Hong Kong will enable more users from all over Asia and beneficiaries of the groups digital economy to be able to Invest and participate in the growth of the group. In addition to expanding the groups overall investor base, the offering will reach abundant new funds in the Asian market and create opportunities for global investors to trade group shares nearly in full time.
In the information disclosed in the prospectus, Alibaba disclosed the latest shareholding structure. Among them, Softbank held 25.8%, Ma Yun 6.1%, Cai Chongxin 2.0%, other directors and senior executives 0.9% and other public shareholders 65.2%. In addition, Alibaba also talked about the companys partnership system in the prospectus. According to the prospectus, in July 2010, Alibaba officially established the Alibaba partnership, which currently has 38 members.
Zhang Yong, chairman and chief executive officer of Alibaba group, said in an open letter to investors that Alibaba will continue to firmly pursue the three major strategies of globalization, domestic demand, big data and cloud computing, of which globalization is Alibabas future and big data and cloud computing are the oil and engine in the era of digital economy. At the same time, Alibaba is also fully promoting Alibaba Construction of business operation system: open Alibabas business, finance, logistics, cloud computing and other infrastructure for the digital economy to all customers and partners to help them complete digitalization and move towards intelligence.
The following is the full text of the letter:
Letter from Chairman and CEO of the board of directors to investors
Thank you for your attention and support to Alibaba group. We launched the IPO in Hong Kong today, which is a new starting point for Alibaba, a 20-year-old.
Today, the world has entered the era of digital economy, which is a big era full of changes, challenges and opportunities. Under the background of this era, how can Alibaba stick to its original intention, face the future, create and innovate continuously, and create value for the society, customers, consumers and investors? I hope to share with you our thoughts, plans and actions.
To be a good company for 102 years
Alibaba is a company driven by mission, vision and values. Alibabas cultural origin comes from our belief in the beauty of people and society. In recent years, we have been thinking about what can be changed and what can not be changed in the era of digital economy. On the 20th anniversary of Alibaba on September 10, we announced Alibabas mission, vision and values for the future. Our initial mission of making the world have no hard business has not changed, but our vision of becoming a company that has lived for 102 years has been upgraded - we hope to become a good company that has lived for 102 years. Alibaba does not seek to become a big company or a strong company. We hope to become a good company that will bring positive energy to the society, take on more social responsibilities, serve small and medium-sized enterprises, be recognized by employees and satisfy shareholders.
At the same time, we have upgraded Alis values of six pulse sword. From six words to six Ali dialects, each of them is born from a historical story of Ali, which represents Alibabas distinctive cultural attitude and choice. They are:
Culture is Alibabas basic value orientation and the driving force that leads Alibaba from zero to today. No matter how the world changes, only by sticking to our original intention can we face the future and continue to move forward.
Opening new commercial civilization in the era of digital economy
The most significant sign of the era of digital economy is that the Internet is integrating with industry, agriculture, service industry, social public services and other aspects. This also gave birth to the development of new commercial civilization. In the era of digital economy, the essence of business civilization is based on openness, sharing, cooperation and win-win. It returns from the traditional zero sum business game to the customers concern and value creation. The opportunities brought by digital technology can be shared by the society more generally and promote the sustainable development of society better. Alibaba hopes to make its own contribution to the creation of new business civilization in the era of digital economy with its own exploration and practice.
After 20 years of development, Alibaba has developed from an e-commerce company at the beginning of its establishment into a business infrastructure that has begun to take shape in the era of digital economy spanning digital commerce, digital finance, intelligent logistics, cloud computing big data, etc., and thus formed a unique digital economy ecology. Together with the vast number of partners in the digital economy ecology, we are serving consumers and industries at the same time. We are not only creating and stimulating the rise of new consumption, but also committed to serving all walks of life to complete the digital transformation and upgrading of industries. We hope that we can not only help thousands of small and medium-sized enterprises grow, but also encourage and support the development of new unicorns and small giants. Under the big tree, not only can grass grow, but also can make more grass grow into big trees.
General goal and general strategy for the future
On the 20th anniversary of Alibaba in September this year, we have announced our overall strategic goal for the next five years: to serve global consumers, including more than 1 billion Chinese consumers, and create a consumption scale of more than 10 trillion yuan. This is our long-term strategic goal: by 2036, we will serve 2 billion consumers around the world, create 100 million jobs and help 10 million small and medium-sized enterprises to make profits.
In order to achieve the strategic objectives, we will continue to firmly implement three major strategies: globalization, domestic demand, big data and cloud computing.
Globalization is Alis future. We firmly believe that the combination of digital technology and business brings about chemical reactions, which has no national boundaries. The wide application of digital technology in business, finance, logistics and other fields will greatly improve the trade efficiency between different countries and markets, so that the whole world has no hard business. We will continue to promote the development and prosperity of the global digital economy ecology from the aspects of global purchase, global sale, global payment, global transportation and global play.
Domestic demand is the future of Chinas economy. Chinas economy is transforming from an investment and export-oriented economy to a consumption driven economy. Today, on Alibabas China retail platform, mobiles monthly active users reach 785 million. They are the most active, youngest and future consumer power in China. Chinas ongoing urbanization in rural areas, the emergence of hundreds of millions of middle-class families, and the emergence of all consumers as Internet users have brought huge potential for consumption growth, and also provided a new possibility for the use of digital technology to create consumption growth. We hope to meet the different levels of consumer demand through the supply of diversified goods and services. Not only that, we also hope to drive supply side reform through big data, connect the market directly through innovative supply, and create new consumer demand.
Big data and cloud computing are the oil and engine in the era of digital economy. Alibabas digital economic infrastructure not only generates data continuously, but also keeps the ecology prosperous and developing because of the wide application of data. We believe that in the era of digital economy, computing power is becoming a new generation of productivity. In the future, all enterprises will become Internet enterprises in a new sense, and will become big data driven companies. The vast opportunities Alibaba faces are not the upgrading of one industry, but the upgrading of all industries. Therefore, we are trying our best to promote the construction of Alibabas business operation system: we will open Alibabas business, finance, logistics, cloud computing and other infrastructure for the digital economy to all customers and partners, and help them to fully complete the digitalization and move towards intellectualization.
Cultural persistence and future creation
Culture is the cornerstone of Alibaba, and innovation is Alibabas gene. After ten years of exploration, Alibaba has created and developed a unique partner system. We will adhere to the partner governance mechanism to ensure the inheritance of our culture and the adherence to our mission, vision and values. On September 10 this year, we completed the comprehensive upgrade of the management team, which is an important step for our future development. We firmly believe in continuous innovation, self challenge and even self subversion in this rapidly changing world. Talents are Alibabas most precious wealth. We need to constantly emerge wind makers facing the future. We will let more young people to create and try, let more women take important positions, and cultivate more global talents. We create the soil, let our employees have love for the society, curiosity for the future, let the world because of our creation more warm and bright.
Back to Hongkong
When Alibaba first went public in 2014, it regretfully missed Hong Kong. Hong Kong is one of the most important financial centers in the world. Over the past few years, Hong Kongs capital market has undergone many encouraging major reforms. At a time of great changes in Hong Kong society, we still believe in the bright future of Hong Kong. We hope to contribute our modest efforts and actively participate in the future construction of Hong Kong.
Thank you again for your attention and participation in Alibabas development. Because believe, so see, the future belongs to believe believe, alibaba will continue to work hard!
Chairman and CEO of Alibaba Group
Source: responsible editor of 21st century economic report: Yang bin_nf4368