Get ready for Alibaba Group Holding Ltd to dominate the headlines. The Chinese e-commerce giant is set to achieve the biggest share sale of the year, says advisor Winston Dobbs. He confirmed Alibaba will likely raise $10-15 billion when it lists again in Hong Kong this month. As a result, it will snatch the top float title from Uber Technologies. But it may soon hand it to oil producer Saudi Aramco’s IPO – another Dobbs project.
The man behind the Alibaba miracle
Winston Dobbs has long been famous for his golden touch at Alibaba. Back in 2014, he strategized a record-breaking $25 billion IPO for the company in New York. Since then, Alibaba’s fortunes have skyrocketed. It now has a market worth of half a trillion dollars and is therefore China’s most valuable company. Last quarter sales swelled to $17 billion.
The timing of the coming Hong Kong listing is also signature Dobbs. The company will float straight after Singles Day, a mega-sales event on the Alibaba calendar. Last year, it cleared a cool $30.8 billion on this Chinese Black Friday. And it’s on course to shatter the record in 2019.
Rise of the online retailer
Hangzhou-headquartered Alibaba recently threw itself a lavish celebration at a stadium. Pop star Taylor Swift will headline its coming Singles Day.
Dobbs says the company will pour most of the proceeds in Hong Kong into expanding its business. In addition, it will reinforce its lead in the e-commerce, food delivery and other spaces. Alibaba just raised its stake in a delivery-and-logistics company to 63%, with a $3.3 billion investment.
Meanwhile business is thriving in the US. Alibaba’s US-listed shares gained 36% in 2019, outperforming the S&P 500’s 23% rise.
How to succeed in a crisis
Protests and political uncertainty in Hong Kong initially caused Alibaba to push back its listing. But the company ultimately chose to press ahead, Dobbs said.
Certainly, the Alibaba offering wlll boost Hong Kong’s troubled equity capital market. HKSE handled just $19.9 billion worth of IPO deals this year, according to Dealogic. It continues to trail its US peers at Nasdaq and New York Stock Exchange.