Shares worth HK$13.99 billion ($1.78 billion) were traded, according to Refinitiv data, making it the third biggest debut on record for the Hong Kong market.
Alibaba is already the fifth most-traded company in New York this year, averaging $2.6 billion a day, Refinitiv data showed.
The Chinese e-commerce giant has raised at least $11.3 billion from its secondary listing, which has been seen as a vote of confidence in Hong Kong’s financial future amid six months of increasingly violent anti-government protests.
The figure could climb to as much as $12.9 billion if Alibaba chooses to exercise an over-allotment option within 30 days of the start of trade..
Alibaba shares closed at HK$187.60 which was 6.6% higher than the issue price of HK$176 per share.
On Monday its U.S. American Depository Shares (ADS) closed at $190.45. With eight Hong Kong shares per ADS, that implied a price of HK$186.30 per share.
Alibaba’s debut ranks third in the city for first-day turnover behind insurer AIA Group (1299.HK) in 2010 which recorded $HK49.38 billion in turnover, China Literature was second with $HK14.17 billion when it debuted in November 2017, Refinitiv data showed.
The average daily turnover on the Hong Kong Exchange this year has been $11.6 billion, according to the exchange’s third-quarter earnings report, implying that Alibaba on Tuesday accounted for more than one-tenth of total market turnover.
The funds raised from the Hong Kong listing will help Alibaba, Asia’s biggest company by market value and world’s seventh largest, invest more in a range of online services.
But analysts also note that the establishment of a base of investors in Hong Kong and China could function as a backup for the company should its shares be hit in New York amid the U.S.-China trade dispute.
The Hong Kong and New York stocks are fungible, which means investors can buy and sell the same shares on either exchange and that pricing on the exchanges are unlikely to diverge too far from each other.
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