SoftBank says additional Alibaba ADS not tied to any future SoftBank transaction

Asian Tech Press (Feb 9) -- Alibaba's recent registration of additional ADSs is not tied to any specific future transactions by SoftBank Group Corp , a spokesperson for the Japanese technology investor said on Wednesday.

Chinese e-commerce company Alibaba filed a form with the U.S. Securities and Exchange Commission (SEC) on Feb. 4 to register an additional 1 billion American depositary shares (ADSs), each representing eight ordinary shares of par value of $0.000003125 each.

Bloomberg cited Citigroup analysts as saying the move may indicate SoftBank's intention to sell part of its stake in Alibaba.

Some analysts have also pointed out that the application for ADS registration is a procedural operation, not necessarily related to stock trading.

According to Citi's calculations, SoftBank holds 5.39 billion ordinary Alibaba shares, equivalent to 673.76 million ADSs, or a 24.8% of stake.

Affected by the news, Alibaba shares fell more than 6% in New York on Monday.

Alibaba stock on Feb 9.

However, the stocks rebounded after SoftBank denied its involvement in the Chinese tech giant's filing of additional ADSs. As of press time, Alibaba's shares were trading at HK$118.00 ($15.14) per share in Hong Kong, up 6.12%.

(US$1 = HK$7.7936)

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