(Yicai Global) June 18 -- Alibaba Group Holding intends to subdivide its ordinary shares by a ratio of one to eight.

Alibaba will hold a vote on the plan at the annual general meeting of its shareholders in Hong Kong on July 15, the Hangzhou-based firm said in its filing with the US Securities and Exchange Commission yesterday. If the plan is approved, it will split the shares before July 15, 2020. Alibaba's share number will jump from the current 4 billion shares to 32 billion after the move.

Companies split their stocks to attract more investors and improve their liquidity. The number of shares outstanding will go up and the denomination of each share will drop, which will also decrease earnings per share. The shift will not have any impact on the relevant rights of shareholders, according to the company.

Alibaba is planning for a secondary share offering on the Hong Kong bourse as early as in the second half of this year to raise USD20 billion, several media outlets have reported, even though Alibaba has refused to comment on the matter.

Alibaba's stock [NYSE: BABA] rose 1.1 percent to USD159.90 yesterday.

Editor: Emmi Laine