Alibaba Group Holdings Ltd. has postponed its listing in Hong Kong.
The $15 billion listing of Alibaba was initially to be listed by the end of August in Hong Kong. However, the political unrest prevailing in various parts of Asia and in particular Hong Kong is making the e-commerce giant postpone its listing.
The listing of Alibaba which was set to be in August is however postponed to early October, though it has not been officially mentioned.
The decision was made during the board meeting that took place at the earnings release of the company last week, say sources.
Hong Kong which is a Chinese-controlled territory is facing a lot of political uncertainty. The recent demonstration that took place in the international airport in Hong Kong has further aggravated the situation. Pro-democracy demonstrations, tear gas firing, and arrests had brought the airport to a shutdown. About 700 people were arrested by the demonstration.
The Hong Kong markets witnessed a steep fall, when it touched 7-month lows during trade last week, caused by the severity of the unrest.
The Alibaba listing, which is considered one of the world’s biggest one of this year, has been much awaited by investors. However, the listing has been postponed under unusual circumstances.
Tech stocks from China like Tencent Holdings and Meituan Dianping will benefit by the postponing of the listing, as investors will not be withdrawing their money from their company shares.
The financial community is closely watching the listing plans of Alibaba in Hong Kong. However, Alibaba has not commented on any of its plans regarding its listing in Hong Kong.
Another company that canceled its IPO listing is Anheuser-Busch InBev. The $9.9 billion IPO of the company was canceled last month.
CEO Charles Li of the Hong Kong Stock Exchange has declined to comment on the postponed listing by Alibaba, saying it is technically confidential.
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