Ali Listed In Hongkong To Subscribe For AB: Eager To "Eat Meat" Retail Hot Purchase Dissatisfaction With Discount Agencies Cautious Release

In November 20th, Alibaba group (hereinafter referred to as "Ali") Hongkong IPO confirmed the final offer price of HK $176 per share.

"Ali subscription of new shares is very popular, and the international placement is ahead of half a day. According to market information, the amount of public offering is over 40 times, and the frozen capital is more than 96 billion 300 million yuan, exceeding the 70 billion 949 million yuan of hand travel. Ali will also start the callback mechanism, and the proportion of public offering will increase from 2.5% to 10%. In November 20th, Wu Biwei, President of Fu Road Securities and financial services and enterprises, told reporters in an interview with twenty-first Century economic report.

The Alibaba listed a total of 500 million new shares, and another 75 million subscriptions, priced at HK $176 per share and up to HK $101 billion 200 million. Even before the exercise of excess allotment rights, the scale of financing amounted to HK $88 billion, which is the world's largest IPO record in 2019.

The reporter learned from more than 10 institutions and individual investors who invest in Hong Kong stock. Because the discount in the primary market is too low, some organizations are unwilling to participate in the subscription of Ali new shares, and plan for the two level market investment, while another part of the institutional investors and retail investors who focus on long-term investment are actively involved in the subscription.

Hot subscription

Ali subscribed too much, everyone is very optimistic. I also participated in it, using 10 times leverage, total financing subscription of 1000 shares, financing interest rate 5.7%. " In November 20th, an investor said.

Another investor also said, "I have already subscribed to one hand, and Ali Hong Kong stock has a new admission fee of 18800 Hong Kong dollars. Many friends who invest in Hong Kong and America share in the subscription. I am a heavy user of Taobao. I am very optimistic about the future development of Alibaba. I hope I can win the lottery. "

A private person said he did not participate in the listing of Ali Hongkong, but "my friends from Hangzhou are involved in the new competition, using the fast track for the purchase of brokers. He has relatively large capital, mainly for long lines.

A private company official from Southern China also said: "I have some institutional friends to subscribe to some Ali stocks. Usually through the Hong Kong stock account or the Hong Kong dollar fund (Note: to apply for the relevant securities license of the Hongkong) to participate in the subscription. "

The reporter learned from Fu Road Securities that the total amount of Ali was over 5 billion 100 million through Fu Lu securities, which accounted for over 218% of the public subscription amount of Ali, of which the total amount of financing subscription was over 3 billion 300 million.

To subscribe to Ali's institutions and individuals, without exception, they are optimistic about Ali's growth.

"From oversubscription, the market still sees much. Hongkong is a market dominated by institutions. It is mainly the long-term capital, good liquidity, high margin of security, stable growth of performance, and high market monopolization. "Alibaba is in line with these points." A private person said.

Wu Bi Wei further pointed out: "long term investors in the Hongkong market will configure Ali shares like this. Ali is bound to enter the Shenzhen Hong Kong Tong, Shanghai and Hong Kong through the standard, and will become a constituent stock of the Hang Seng Index. International placement is mainly based on institutional investors, while retail investors are the main public subscriptions. Retail investors, especially retail investors in Hongkong, are less interested in trading American stocks. China's leading technology companies such as Ali will be listed as second in Hongkong and will be highly sought after.

While investors from the exhibition account talked about the subscription to Alibaba, they said, "we hope that Ali will have greater development in the future. Alibaba group announced quarterly results for the year ended September 30, 2019, cloud computing business continued strong, quarterly revenue of 9 billion 291 million, exceeding analysts' expectations.

In this regard, Zhang Ting, a fortune researcher, said: "since Alibaba has been listed on the US stock market, the investment preference of Hong Kong stocks is weak. Therefore, the first day of listing will not rise as much as the previous stock market. But in the long run, Ali is an excellent company. However, it is necessary to remind investors that leverage must be moderate."

In fact, this trend is likely to continue. Alibaba is expected to start trading on the stock exchange's main board in November 26th. According to Wu Biwei, "the result of Ali's subscription will be announced by the HKEx on November 25th. It is expected that Ali's dark market transactions will be very hot in the afternoon."

Dissatisfied with pricing discount agencies cautious

The back of Ali's hot purchase is part of the prudent operation of the institution. Reporters interviewed many public offerings and private equity managers involved in Hong Kong stock investment, saying they would not participate in Ali's subscription.

"I do not intend to subscribe to Alibaba." In November 20th, a public fund manager who ran the QDII fund and Shanghai Hong Kong Shenzhen Fund said, "Ali is not a new listing. The essence is not IPO. Hong Kong US parity, Hong Kong stocks are freely convertible. For normal investors, the configuration has been allocated to US stocks, and there is no need to subscribe."

According to the above public fund managers, only QDII can subscribe to Ali in the first tier market, and Shenzhen and Hong Kong Shenzhen fund can only buy in the two tier market if Ali is listed in Hong Kong.

On the same day, many private equity fund managers who invested in Hong Kong stocks also said they did not participate in Ali's "fight new" because the price discount was too low.

"I did not subscribe to Ali." A private Shenzhen company official said, "there is no price discount, why do we need to fight new?"

A snowball ID "a money pill" investors said, "Hong Kong stock issue price and the two tier stock market price difference is not big, there is no need to subscribe for new shares, want to buy, the two level market to buy more flexible. From the price earnings ratio, Ali is 30 times reasonable and 30 times suitable for investment.

"I did not subscribe to Ali." Lin Cheng, a private person who invested in Hong Kong stocks, also said that the first class market subscription discount was too low. The original discount rate of 5% was only 2%. And high US stocks have risks.

Low discount is the most important reason why institutional investors are generally reluctant to subscribe to Ali. According to Ali side, when determining the offering price, the factors such as the closing price of the US depositary shares on the 19 day were taken into account. In November 19th, Alibaba's US shares closed at a market price of $185.25. According to the conversion ratio of 1:8, the price of Ali shares is about $180 per American depositary share, and the selling price is equivalent to about 2.8%-2.9% discount on the US stock price.

"Now do not plan to buy, if the US stock falls sharply, drives the technology stock to fall together, the Ali present price falls 30% approximately is the good buy point. Because Ali has many concepts that will gradually create more cash flows, such as Ali cloud, ants and so on. And in Hongkong, more investors can exchange Alibaba through Shanghai and Hong Kong through tools such as Shanghai and Hong Kong, and do not need to go to the US stock exchange. This is a good thing for Alibaba, a widely used stock in the mainland. Lin Cheng said.

There are few institutions waiting for Ali's share price to fall.

A Southern China private equity company official said, "participation in the Hong Kong stock placement is not as good as the adjustment of the US stock market. After the valuation is down, it will be gradually bought." After all, the market participation is not low, so the price can not be reduced. "

"Ali's financing, valuation is not low, the current valuation of the capital is basically equivalent to the valuation of the United States, we think the reasonable price earnings ratio should be between 10-20 times." A private person said.