Chinese e-commerce giant Alibaba listed its shares in Hong Kong, raising up to US$13.4 billion. It’s IPO price was set at HK$176 and since its listing, the stock price has risen approximately 12% to HK$197.
I decided to make this article public given how I felt everyone could benefit from the questions that my subscribers have been asking me to clear the various uncertainties.
What is the conversion mechanism?
As stated by the prospectus by Alibaba, the Hong Kong-listed shares and the US-listed shares are fully convertible. This means that stock holders of the US-listed shares will be able to convert these shares to the HK-listed shares and vice versa. Also mentioned, for ordinary shares deposited in or received by CCASS, it would generally require 2 business days and the conversion will be subjected to transaction costs as well. For those interested in reading the Alibaba Offering Prospectus, you may find it...