Alibaba raises IPO price range as demand surges ahead of listing
China’s e-commerce giant Alibaba has boosted its initial public offering price range to US$66 and US$68 per share, up from an original marketing range between US$60 and US$66 per American Depositary share.
China’s e-commerce giant Alibaba has boosted its initial public offering price range to US$66 and US$68 per share, up from an original marketing range between US$60 and US$66 per American Depositary share, according to a filing with the US Securities and Exchange Commission on Monday.
The company controlled by chairman Jack Ma Yun would raise a flotation record between US$24.3 and US$25.03 billion, topping the mark set by Agricultural Bank’s Hong Kong and Shanghai listing in 2010. The increase in the price range was caused by heavy demand from investors in the US for Alibaba.
The high-flying company did not increase the total number of shares, but underwriters have the option to issue more shares to meet the surging demand for Alibaba, which accounted for over 80 per cent of China’s online retail sales last year.
People familiar with the firm said the company may close the order book as soon as Tuesday.
Alibaba is set to price the deal on Thursday, followed by a market debut in New York the next day.
Alibaba decided to list in New York after Hong Kong regulators refused to give it an exemption for its special partnership structure, which gives Ma and his executives the power to nominate a majority of the board members.