Alibaba’s record hunt – Largest IPO of all time – Reuters Germany

Alibaba's record hunt – Largest IPO of all time – Reuters Germany

       

– by Liana B. Baker and Jessica Toonkel and Deepa Seetharaman

       

New York (Reuters) – Chinese online retailer Alibaba is facing the biggest IPO ever.

       

Investors pulled the company, which was founded 15 years ago by the English teacher Jack Ma, the shares literally out of hand. The papers were issued at a maximum price of $ 68. The volume of pending in New York on Friday IPO thus stands at $ 21.8 billion. Only billionaire Ma collected almost $ 900 million. A number of managers and software professionals at Alibaba are the step to the stock market millionaires.

       

With $ 167.6 billion (130 billion euros), the Internet retailer worth more than long-established U.S. corporations such as Walt Disney and Boeing, but also more than the rival Amazon and eBay. If the Alibaba papers are traded on Wall Street on Friday for the first time, experts expect a price jump of 10 to 15 percent. The New York Stock Exchange Nyse allowed to test their systems in two test runs through their paces to prepare for the expected onslaught of investors. The U.S. Nasdaq had collapsed almost at the initial listing of Facebook two years ago under the flood of orders. The courses were delayed for hours, many investors lost money. Therefore Alibaba had opted for the Nyse as a stock exchange.

       

Still are the Chinese banks, ICBC and AgBank in the ranking of the world’s biggest IPO just ahead of Alibaba. But if the newcomer as expected and those shares are issued, which he has reserved for a high demand, it is $ 25 billion clearly number one. In the USA Alibaba is already the largest IPO. The credit card company Visa had been collected in 2008 almost 20 billion dollars.

       

Many investors made in the run-up to worry about whether they would get assigned the expected papers. The shares were oversubscribed. 35 to 40 investors, including the giant BlackRock fund had ordered for each of more than a billion dollars papers, as it was known in financial circles. Alibaba had the price range has increased due to strong demand. Originally had been called 60 to 66 dollars.

        
       

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Ma had the professional investors seemed confident in his promotional tour: “That was one of the more impressive presentations,” said Jerry Jordan, who manages the 48 billion dollar Jordan Opportunity Fund. “I did not realize how successful they are.” 15 years after its founding in Mas Studio wound Alibaba now more business than from Amazon and Ebay together. 80 percent of online sales in China, the second largest economy in the world, go to the account of Alibaba. From April to June, revenues shot up by 46 per cent upwards, unlike many Internet companies, the company writes earnings: $ 1.99 billion, it was during these three months. E-commerce experts see Alibaba already on par with Facebook and Google. Continued …