Ernst & Young LLP estimated a HK$100 billion proceeds if Alibaba Group Holding Ltd pushes through with an initial public offering in Hong Kong this year. Alibaba Group Holding Ltd is the biggest e-commerce company in China.
In a report distributed in Hong Kong yesterday, the accounting firm said that the companies may raise the said amount through initial share sales in the city. An IPO valued at HK$100 billion would be the biggest in Asia since October 2010. This was when AIA Group Ltd raised HK$159 billion according to a data compiled by Bloomberg. The data show that companies have raised about HK$40 billion in IPOs this year in Hong Kong. An increase was seen from the previous HK$16 billion in the same period last year.
The spokesman for the company said that Alibaba Group has not made any decision on the timing of a possible initial public offering. Ernst & Young did not specify how much of a stake is expected to be sold by Alibaba.
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