Alibaba Set to Sell Shares After Capping Two Week Road Show
Alibaba Group Holdings Ltd is set to sell around US$22 billion shares after capping a two week road show that attracted interest from investors from different parts of the globe in which hthey say is one of the biggest initial public offering. The shares are to be priced after the markets will close at 4 am Friday Beijing time and starts trading in the New York Stock Exchange Friday under its ticket name BABA.
Several investors are interesting grabbing a part of the China rapid growth and evolving internet sector and is struggling to grab more shares as top executives in Alibaba along with their executive Jack MA started doing the road show last week. Alibaba handles more transaction than eBay and Amazon combined is boosting its initial public offering price between US$66 to US$68 a share because of the strong demand. To top that range the IPO is said to raise around US$22 billion but if underwriters will exercise an option to sell more shares, Alibaba’s debut will top Agricultural Bank of China’s IPO record listing of 2010
Analysts believe that the current price range is significantly undervaluing the long term growth of the company. During the 15 years since the company was founded by Ma, Alibaba powered four fifths of all online e-commerce dealing in China and slowly branched out into areas such as e-payments and financial investment.