Alibaba is looking to carry out a stock split, a move it says could help with further fundraising activities.

Under the proposal, the Chinese e-commerce giant will split one ordinary share into eight. That would mean the current number of ordinary shares — which stands at 4 billion — will increase to 32 billion.

Shareholders will need to vote on this at the company's annual general meeting on July 15 in Hong Kong. If approved, the stock split will go into effect no later than July 15, 2020, Alibaba said.

Alibaba is reportedly looking into an initial public offering in Hong Kong which could raise as much as $20 billion.

"The Board of Directors is proposing the Share Subdivision to increase the flexibility for the Company in future capital market activities," Alibaba said in a statement on Monday.

"Among other reasons, the one-to-eight share subdivision will increase the number of shares available for issuance at a lower per share price, and the Board of Directors believes that this will increase flexibility in the Company's capital raising activities, including the issuance of new shares," the statement added.