May 28, 2019

Alibaba weighs $20 billion secondary offering in Hong Kong

Dan Primack, author of Pro Rata

Illustration: Sarah Grillo/Axios

Alibaba is considering a $20 billion secondary offering in Hong Kong, five years after raising $25 billion via an IPO in New York, according to Bloomberg.

What to watch: First, this may be as much about rising trade tensions between the U.S. and China as it is about raising capital. Floating in Hong Kong could further strengthen ties between Alibaba and Beijing, while also providing some regulatory risk mitigation in the U.S.

  • Hong Kong recently relaxed its listing rules to include such things as dual-class shares. Alibaba had proven unable to get HK approval for its governance structure the last time around but, if successful now, it could pour accelerant onto HK's tech listings business.
  • Get it while the going is good. Or, as Axios' Felix Salmon puts it: "I think it makes sense to tap public markets right now. Frankly I'm surprised everyone isn't doing it."

Go deeper

Coronavirus could lower GDP by $15.7 trillion

Reproduced from Congressional Budget Office; Chart: Axios Visuals

The CBO released projections on Monday for U.S. nominal GDP to be lower by $15.7 trillion over the next decade than its estimate in January as a result of the coronavirus pandemic.

What they're saying: It predicts that when adjusted for inflation GDP will be $7.9 trillion lower over the next decade and down by $790 billion in the second quarter of this year — a 37.7% quarterly contraction.

16 mins ago - Sports

The sports teams that have issued statements on George Floyd protests

Data: Twitter; Graphic: Andrew Witherspoon/Axios

74 of 123 teams (60%) across the big four American sports leagues issued statements regarding George Floyd's murder and the ensuing nationwide protests as of 12 a.m. ET today.

Why it matters: Teams should be judged by their actions more than their words, but seeing who did and did not acknowledge the biggest story in America gives a sense of what each franchise believes its role — and the role of sports more broadly — should be at a time like this.

Updated 58 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 7 a.m. ET: 6,289,259 — Total deaths: 375,987 — Total recoveries — 2,706,820Map.
  2. U.S.: Total confirmed cases as of 7 a.m. ET: 1,811,277 — Total deaths: 105,147 — Total recoveries: 458,231 — Total tested: 17,340,682Map.
  3. Public health: Nearly 26,000 coronavirus deaths in nursing homes have been reported to federal health officials —Coronavirus looms over George Floyd protests across the country.
  4. Federal government: Trump lashes out at governors, calls for National Guard to "dominate" streets.
  5. World: Former FDA commissioner says "this is not the time" to cut ties with WHO.
  6. 🎧 Podcast: The virus didn't go away.