Alibaba Group Holding Ltd. has postponed its late August listing in Hong Kong due to the ongoing political unrest and financial instability in the region, Reuters reported Aug. 21, citing people with knowledge of the matter.
Alibaba is believed to have confidentially filed for a second listing in Hong Kong in a deal that could raise up to $15 billion.
The IPO could instead be launched in October when political tensions ease and market conditions become favorable again, sources told the news wire.
According to the report, the decision to delay the float was reached at the board meeting held before Alibaba released its first-quarter earnings on Aug. 15. One of the sources reportedly said that proceeding with the Hong Kong listing amid the current political situation would be "very unwise" for Alibaba as it would "annoy" the Chinese central government.
Since June, Hong Kong protesters have been opposing a proposed extradition bill that would allow suspects to be sent back to mainland China. The protests have at times escalated to violent clashes between demonstrators and the police, plunging the city into protracted unrest.
An Alibaba spokesperson told S&P Global Market Intelligence that the company doesn't comment on market rumors.
