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Alibaba shares surge more than 6% on Hong Kong debut

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Shares in Chinese online retail giant Alibaba soared more than six per cent on their Hong Kong debut Tuesday, after raising at least US$11 billion in the city's biggest IPO in nearly a decade.

[HONG KONG] Shares in Chinese online retail giant Alibaba soared more than six per cent on their Hong Kong debut Tuesday, after raising at least US$11 billion in the city's biggest IPO in nearly a decade.

Alibaba, which already is listed in the United States, had set the price for each share at HK$176, but the stock jumped 6.25 per cent to HK$187 as it began trading on the Hong Kong exchange.

The company called the listing a vote of confidence in the city which has been wracked by months of sometimes violent protests and the China-US trade war, which have sent the local economy into recession.

Asia's most valuable company has said previously it could raise almost US$13 billion via the initial public offering, which was originally planned for the summer but was pushed back due to the headwinds hitting the city.

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Alibaba's list price came in below an HK$188 indicative ceiling originally announced.

With 500 million shares offered to investors, the company has said it would raise HK$88 billion (S$15 billion). Eight is considered an auspicious number in China.

If it chooses to use its over-allotment option to sell a further 75 million shares, Alibaba could bring in HK$101.2 billion.

AFP