San Francisco (Reuters) – The record-breaking IPO of China’s leading online retailer Alibaba is even bigger than first planned.
The company raised the price range on 66 to 68 dollars per share, as on Monday emerged from documents with the SEC. So far the Chinese had targeted more than 66 dollars. Several people familiar with the situation had already said before, because of “overwhelming” demand from investors wanted the Amazon competitor offer its shares more expensive. The initial offering (IPO) of Alibaba is the largest of a technology company ever. The debut on the New York Stock Exchange is scheduled for Friday.
Reuters last week had already learned from insiders that Alibaba prematurely closes its order books due to high demand. The company said on Monday further, the number of shares to be issued would not be changed. Alibaba offers a total of 320 million shares. So far, the issue volume was thus the price range 60-66 dollars, at a maximum of just over 21 billion dollars. Even so would make the IPO of Facebook in May 2012 with a volume of 16 billion dollars in the shadow Alibaba.
In exercise of an over-allotment option Alibaba would even reach around $ 24 billion, surpassing even the hitherto largest IPO by the Agricultural Bank of China lay with over 22 billion in 2010.
With the IPO proceeds Alibaba wants to promote, inter alia, its expansion. “Once we are listed in the United States, we will do our business in Europe and the USA to develop,” said founder Jack Ma.
© Thomson Reuters 2014 All rights reserved.
No comments:
Post a Comment