Sunday - Jun 25, 2017

Alibaba aiming for an IPO target of $24 billion


Alibaba shakes up the world as their IPO reaches a record figure of $25 billion

Chinese -based e-commerce superpower, Alibaba Group Holdings, according to all indications, are on the correct path toward what promises to be the largest IPO in history, looking for $66 a share- a target, which if achieved, would value the company at around $161 billion.

This evaluation would dominate the $17.9 billion raised by Visa in 2008, which is the biggest U.S. debut, and even Facebook’s highly vaunted $16 billion stock offering in 2012, which was the largest U.S. online-based IPO to date.

It would also surpass the $19.22 billion IPO done in 2010 by Asia-based ABC Bank, the biggest global debut.

If all goes according to plan, and Alibaba achieve their $160 billion + target, they will instantly become the 23rd most valuable company listed on a U.S. stock exchange, possibly even surpassing Amazon ($160 billion) and breathing down their necks of the Bank of America who are valued at $168 billion) and even the mighty Intel who are currently valued at $173 billion.

According to a spokesperson for Alibaba, the plans are for the company to sell around 368,000 shares, for which they are hoping to raise between $60 and $66 a share.

According to the terms of their recent filing Alibaba’s IPO is due to get underway under the symbol “BABA” on the New York Stock Exchange either on September the 18th or 19th, with a green light to be given after Alibaba successfully winds up their travelling road show, which they have used to promote their stock to potential investors around the world.

According to industry information Alibaba plans to allow employees and other insiders the opportunity to pick up some shares before they start trading publicly, under a Credit Suisse Group AG supervise so-called “friends and family” program.

Alibaba going to the Ayrshire offering having recently posted a decisive second-quarter profit jump, a factor which is expected to bolster the confidence of potential Institute investors who lately have been discerned as demanding more than than just stellar revenue growth from IPO companies.

There is little doubt that Alibaba’s stock offering, when it does come, will be the subject of considerable scrutiny in the market, with many of the stock market’s key players reported to be nervous about the possibility the IPO causing major fluctuations in the market for a number of months months, just as Facebook’s did when its stock took a major downtown almost immediately after the company went public.

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