Institutional subscriptions are hot and individual investors are long-term.
How is Alibaba’s Hong Kong listing subscription hot? On November 19th, foreign media reported that Alibaba had stopped accepting subscriptions from institutional investors for a long time because of the strong demand. Later, some media quoted Hong Kong brokers as saying that the amount of Alibaba’s public subscription has exceeded three times, which is “not too hot” compared to reading Hong Kong.
Why there are different judgments about the heat of the offer, here are two concepts: institutional subscription and margin (guarantee) subscription.
Alibaba’s public offering, including the Hong Kong Public Offering and the International Offering. According to the prospectus, the number of international offering shares was 487.5 million shares, the number of Hong Kong Public Offer Shares was 12.5 million shares, and the maximum retail offer price of retail outlets was HK$188. If the over-subscription of 75 million shares is included, it will be sold at the highest offer price. This time, Alibaba can raise up to HK$108.1 billion.
As the only Chinese company among the top ten market capitalization companies in the US stock market, and has just released a strong growth report, Alibaba’s listing in Hong Kong has been sought after by institutional investors. It began to offer shares last Friday, and the first day of international placement has been fully paid. . Reuters quoted sources as saying that thanks to strong demand, Alibaba ended half-day ahead of potential institutional investors’ subscription to its new shares in Hong Kong.
The amount of exhibitions disclosed by major brokerages reflects the subscription status of Hong Kong investors. The so-called exhibition, English is Margin, which means the meaning of the deposit. Investors who have opened a “expansion account” can borrow money from securities companies to make leveraged investments and amplify the proceeds when trading stocks.
This time Alibaba listed in Hong Kong, Hong Kong’s major brokerages have prepared sufficient amount of margins. According to Futu statistics, the current subscription amount of HK$8.75 billion, which is the share of retail financing subscriptions, has reached 3.72 times.
The brokerage said that it refers to the multiples of some large-scale IPOs before, such as Budweiser Asia Pacific over-purchasing 3.6 times, China Post Savings Bank over-purchasing 2.6 times, MeituanSuper purchase is only 1.5 times, China Railway Tower is only 1.4 times, Alibaba has a high interest rate, and this multiple purchase is not hot. However, some brokers pointed out that the listings were not popular.
In this regard, many market participants believe that this shows that investors value Alibaba’s long-term value rather than short-term and profit-making.
Xiong Liping, head of the financial research department of Huiye Securities, said in an interview that the current Alibaba international placement is full, believed to be because the stock can be traded in two markets, and international investors are optimistic about this flexibility. Sex, as expected. She also said that Hong Kong stocks are still suffering from the impact of the big environment and Hong Kong’s amendments. In the short term, stock prices may not perform well, but Ali itself has long-term investment value. If retail investors use cash to draw one or two hands, consider It is not recommended to borrow from the exhibition.
Zi Changnian, Chief Executive Officer of Zhiyi Orient Securities Co., Ltd. said that the share price of Alibaba US stocks has risen by 33% so far this year. Its performance has maintained rapid growth under high base and outperformed other Internet technology stocks. However, since it is already listed in the US, retail investors should not expect Alibaba’s Hong Kong stock market to rise like other new stocks on the first day of listing. I believe that if you want to buy this stock, it will focus on multiple factors such as the long-term digital economy and the continuous increase in the synergy effect of the Ali platform.
Xu Weibin, executive director and chief executive officer of Yaocai Securities, predicts that since the public offering only accounts for 2.5% (ie HK$2.35 billion), the international placing part is believed to have been fully subscribed as stated in the news, and the public offering is not over 20 times. Difficult.
Futra Securities, which has more than 6 million Hong Kong stocks and registered US subscribers, conducted a poll. Nearly 80% of investors said they would participate in the subscription to Alibaba
Even though Hong Kong stock commentator Hu Mengqing once said that she was “not interested” in Alibaba’s return, she also analyzed from a technical level. Compared with Tencent’s current price-earnings ratio of more than 30 times, Ali’s valuation is still relatively low. Alibaba is at Hong Kong’s listing will have further room for stock price rises. Because of this, many institutional giants have begun to take positions in the United States after learning that Hong Kong’s listing price has not been discounted. In addition to the close valuation, even if the performance of Hong Kong stocks continues to be unsatisfactory, as long as Alibaba’s share price performance in the US benefits from the US stock market, the cash relationship between the two markets will benefit Alibaba’s Hong Kong stock price.
“AliBaba represents both mainland consumption and the development of science and technology in the Mainland. Basically, an Alibaba stock has already possessed several major industries such as domestic demand, Internet and cloud business. To a certain extent, it is an ETF of a Chinese economy. fund). Hu Mengqing said.