HONG KONG, March 29 ― Hong Kong shares of Alibaba Group were set to open up 14.96 per cent today after it announced plans to split into six units and explore fundraisings or listings for most of them.
The stock was set to open at HK$96.85 (RM54.25) each. That compared with a 2.9 per cent gain for the benchmark Hang Seng Index and a 4.2 per cent jump for the Hang Seng Tech Index.
On Tuesday evening, the company announced that it would re-organise into a holding company structure, with Daniel Zhang retaining his position as CEO of Alibaba Group, and six sub-divisions each with their own CEOs and boards.
The revamp is the most significant restructuring in the company's history and comes after Beijing launched a years-long regulatory crackdown on the tech sector, which targeted Alibaba.
Alibaba's US-listed shares closed 14.3 per cent higher. ― Reuters