Alibaba boosts price range IPO

Financial Mirror (Cyprus) - - FRONT PAGE -

In a fil­ing late on Mon­day with the U.S. Se­cu­ri­ties and Ex­change Com­mis­sion (SEC), Alibaba Group Hold­ing Ltd. raised the ex­pected price range on its ini­tial pub­lic of­fer­ing (IPO) from the prior $60 to $66 to a new range of $66 to $68. The num­ber of shares on of­fer re­mains the same at 320.1 mln.

At the top of the new price range, the company would raise gross pro­ceeds of $21.8 bln. If the un­der­writ­ers ex­er­cise their op­tion on an ad­di­tional 48 mln shares, to­tal pro­ceeds would to­tal $25.03 bln. The fully di­luted mar­ket cap of the firm would be $175.5 bln, and Alibaba would claim an en­ter­prise value of $166.5 bln if the stock prices at $68 a share.

The or­der books for the IPO could be­gin clos­ing Tues­day, and there were re­ports last week that the stock would price on Wed­nes­day and be­gin trad­ing on Thurs­day. That has not been con­firmed by the company, and the orig­i­nal sched­ule of pric­ing on Thurs­day with trad­ing to be­gin on Fri­day is still the ex­pected timetable.

At the company’s road­show stop in Sin­ga­pore on Tues­day, one banker is quoted in The Wall Street Jour­nal as say­ing that he would have liked to “get some shares for our pri­vate clients, but most of [the shares] seem to have been taken up by in­sti­tu­tions.” The road­show is sched­uled to travel next to London, be­fore con­clud­ing on Thurs­day in New York.

Credit Suisse, Deutsche Bank, Gold­man Sachs, J.P. Mor­gan, Mor­gan Stan­ley and Cit­i­group are the joint bookrun­ners on the deal. The stock will trade on the New York Stock Ex­change un­der the ticker sym­bol BABA.

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