The stock split will increase the number of shares at a lower price and Alibaba said it could help with future "capital raising activities.". — CNBC's Stella Soon contributed to this report. Got a confidential news tip? Get this delivered to your inbox, and more info about our products and services. Alibaba is already listed in New York after it went public in 2014. Prices shown are actual historical values and are … Sign up for free newsletters and get more CNBC delivered to your inbox. Alibaba announced last year and have already agreed to an 8:1 stock split. The vote took place at Alibaba's annual general meeting late on Monday. There are several reasons that companies carry out stock splits. The stock split has to take place before July 15th. However, the tech giant declined to comment on reports of a Hong Kong listing. When it does finally split it will help attract investors due to the low cost per share and drive the stock upwards to new highs. "I'd say there is a sense of urgency, the stock split appears to be a step in the direction of getting that Hong Kong listing. When Alibaba went public in the U.S. in 2014, it priced its shares at $68 a piece. It comes as Alibaba is reportedly looking into an initial public offering (IPO) in Hong Kong which could raise as much as $20 billion. That would mean the current number of ordinary shares — which stands at 4 billion — will increase to 32 billion. This would allow the share price to be traded from the high 20's mid 30's at the split. Alibaba doesn't necessarily need the cash from the listing but analysts said it could give it a boost to invest in new areas. That appears to be a nod toward a potential secondary listing in Hong Kong. A monitor displays Alibaba Group signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, Jan. 7, 2019. reportedly looking into an initial public offering. Alibaba chose New York over Hong Kong in 2014 because the latter's rules could not accommodate the Chinese company's dual-class share structure — which allow for weighted voting rights and give company founders and insiders more control. Davidson & Co., said Alibaba may be thinking about an IPO sooner rather than later, arguing the firm is not getting "favorable multiples" in New York and the U.S.-China trade conflict could lead to "scrutiny" on their American listing. Another is to lower the price of each share if a company feels that it has become too high. © 2020 CNBC LLC. I'd expect it relatively soon, given that Hong Kong has lifted the restrictions that originally encouraged Alibaba to list in New York," Luria told CNBC's "Squawk Box Asia" on Tuesday. That stock split, which must come into effect before July 15, 2020, will see one ordinary share split into eight. Hong Kong Exchanges and Clearing, the company that runs the stock exchange, recently reformed those rules, paving the way for Alibaba's secondary listing. A Division of NBCUniversal. Data is a real-time snapshot *Data is delayed at least 15 minutes. The e-commerce giant is reportedly planning an initial public offering (IPO) in Hong Kong. All Rights Reserved. The stock split will increase the number of shares at a lower price and Alibaba said it could help with future "capital raising activities." One is to increase the number of shares with the hope of attracting new investors. Alibaba shareholders voted in favor of a one-to-eight stock split at the company's annual general meeting. Stock split history for Alibaba since 2020. Alibaba shares closed above $173 on Monday. In the stock split proposal, which was released last month, Alibaba said the move would boost the number of shares at a lower price, but importantly also "increase flexibility in the Company's capital raising activities, including the issuance of new shares.". It is already listed in New York. "As it relates to their listing, clearly, they're very cash rich company but this does give them presence in the region from a listings standpoint and gives them capital that they can put to good use," Joseph Berger, CEO of Pacific Epoch, told CNBC's "Street Signs" on Tuesday. Gil Luria, director of research at D.A. We want to hear from you. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Alibaba shareholders voted overwhelmingly in favor of a stock split that the e-commerce giant said could help with further fundraising activities.

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