(Yicai Global) Nov. 14 -- E-commerce titan Alibaba Group Holding reportedly plans to raise between USD10 billion and USD15 billion in its Hong Kong secondary listing, when it will become the first Chinese internet firm to float shares in both New York and Hong Kong.

The Hangzhou-based firm is hoping for around USD180 per American depositary receipt and could start seeking subscriptions as early as today, the Securities Times cited several unnamed sources as saying after the company filed its preliminary prospectus yesterday. Its New York-listed shares last closed at USD182.12, down nearly 2.6 percent.

Alibaba is willing to give a 4 percent discount on its ADR price but many institutions are hoping for as much as 10 percent off, the insider added, saying a 5 percent discount is feasible and that the company will confirm the offer on Nov. 20 and list on Nov. 25.

Having gained shareholder approval to run a one-to-eight stock split, an investor buying in Hong Kong will need to purchase eight shares for the equivalent of one ADR. Based on Alibaba's closing price and a 5 percent discount, the shares could run at about HKD169 (USD21.58) apiece.

Alibaba will use the funds raised to drive user growth and improve its digital economy products and services like meal delivery platform Ele.me and travel agency Fliggy, according to the prospectus. It will also help corporate clients digitize their business, improve efficiency and advance innovation in new business models.

Editor: James Boynton