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Alibaba Fell 3% in Premarket Trading

Tiger Newspress2022-02-07

Alibaba fell 3% in premarket trading as Alibaba SEC filing may signal Softbank plans to sell, Citi says.

Alibaba Group Holding Ltd. registered one billion American depositary shares that hadn’t been registered before, suggesting SoftBank Group Corp. may intend to sell some of its shares.Japan’s SoftBank backed Alibaba before its initial public offering so a large portion of its holdings in the company are not registered as ADSs, Citigroup Inc. analysts including Alicia Yap wrote in a note. SoftBank owns 5.39 billion ordinary shares of Alibaba, equivalent to 673.76 million ADSs, or a 24.8% stake, according to Citi’s calculations.

Alibaba’s Hong Kong shares dropped as much as 4.6%, leading declines of the Hang Seng Index. SoftBank’s stock rose as much as 5.4% in Tokyo.

Masayoshi Son’s SoftBank has been under pressure in recent months as the value of many portfolio companies have slid with the technology downturn. SoftBank’s shares have tumbled about 50% from their peak last year with the decline in the value of holdings, including Didi Global Inc., One 97 Communications Ltd. and DoorDash Inc.

SoftBank, which reports earnings Tuesday, has used buybacks in the past to bolster its own stock. Alibaba is by far its most valuable holding.

A representative for SoftBank wasn’t immediately available for comment.

The Alibaba filing with the U.S. Securities and Exchange Commission will allow the company’s stockholders whose shares have never been registered with the SEC to have the flexibility to sell their shares, Citi said. The registration could also cover the company’s need to issue new shares for the employee equity incentive plan.

Alibaba registered about 2 billion ADSs when the company conducted its IPO in the U.S. in 2014.

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Comment26

  • Shirley Soh
    ·2022-02-08
    Nice
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  • Tanyl
    ·2022-02-07
    I had sold my Alibaba
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  • sky1001
    ·2022-02-07
    Sell is the only way 
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  • KLCC
    ·2022-02-07
    OMG how much more can it fall??? 😰
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  • Bspn
    ·2022-02-07
    Ok
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  • Kel9670ong
    ·2022-02-07
    Need to really understand china govt policy that is affecting the fall
    Reply
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  • 吹股神
    ·2022-02-07
    Time for baba is over
    Reply
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  • StartSmall
    ·2022-02-07
    Signs for a potential sell off though it may also mean there is a buy from other players.
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  • SanWangtikup
    ·2022-02-07
    [Duh] 
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  • Josh87
    ·2022-02-07
    Still my favourite Stock
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  • mster
    ·2022-02-07
    It has been about 1.5yrs since BaBa has drop from its high.  Just don't seems normal at all for a profitable company to keep on falling. Usually any company falling these much would have bounced back or at least shown some sort of recovery. But this just seems like a bottomless pit! It really needs a lot of conviction to have faith with BaBa. Until there is a clear sign of recovery, it's best to stay sideline for awhile. 
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  • IN76
    ·2022-02-07
    ooh no! Hopefully it doesn't become Alibyebye [Sweats] 
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  • JerryT
    ·2022-02-07
    Interesting
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  • Ahlec
    ·2022-02-07
    If someone could enlighten me. Share ratio to ADS. Conversion to ADS suppose to ease the ratio, why would this tie in to SB decision to sell? Am I missing something or is this FUD dump so institutions can buy the false dip?
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  • HH浩
    ·2022-02-07
    Will fall further? 
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  • waiwaiho
    ·2022-02-07
     Pls like,thanks 
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  • koolgal
    ·2022-02-07
    Oh no!  More drop in Baba!  It is certainly oversold and undervalued.  Maybe time to grab more🤔
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  • lawteoh777
    ·2022-02-07
    Like
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  • AlanChia
    ·2022-02-07
    What is new
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  • Skyee
    ·2022-02-07
    Pls like and comment, thanks 
    Reply
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