Alibaba (9988 HK, BABA US) announced after the Hong Kong close that it will become a holding company comprised of the below six business groups in order to “unlock shareholder value and foster market competitiveness” to “capture market opportunities and stimulate growth”. The business group will be able to raise funds and go public as it sees fit.
Alibaba relisted in Hong Kong in November of 2019 after the trade war weighed on the stock despite revenue increasing to $56 billion (RMB 376 billion) for the fiscal ended March 31st, 2019 from $37 billion (RMB 250 billion) for the fiscal year ended March 31st, 2018 and $23 billion (RMB 158 billion) for the fiscal year ended March 31st, 2017. After announcing its Hong Kong listing, Alibaba rallied 68%. The recent geopolitical environment has weighed on the stock yet again and despite revenue increasing from $73 billion in 2020 to $105 billion in 2021 and $132billion in 2022.
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