The Chinese Internet colossal Alibaba Group Holding Ltd. plans to increase the size of its U.S. initial public offering against a background of strong investor demand as the IPO date nears.
People with the correct statistics’ knowledge commented on Monday making the historical raise, the biggest ever.
The dominant power in e-commerce in China is set to increase the top end of the price range to above $70 from the previous $66.
According to a US Securities and Exchange Commission the filing accounts to selling of 368 million shares.
Alibaba, Hangzhou-based group of Internet-based e-commerce operates from background.
The privately owned giant was started in an apartment by a schoolteacher Jack Ma, now Alibaba Chairman and former CEO, 15 years ago. The company’s network of sites includes Taobao, China’s largest consumer-to-consumer online shopping platform similar to eBay; Tmall, a shopping hub for brands like Apple and Gap, to sell direct to customers and AliExpress, an online retail service made up of mostly small sellers offering products to online buyers. as well as Alibaba.
On June 11, 2014, Alibaba launched U.S. shopping site 11 Main, in competition with Amazon and eBay.
Two people present in the meeting told that Jack Ma addressed prospective investors today at Hong Kong’s Ritz-Carlton hotel and said that he won’t seek too high a valuation.
Li Muzhi, a Hong Kong-based analyst at Arete Research Service LLP comments: “There was so much demand in the first two days, it’s reasonable to raise the price range slightly.The company might want to not be too aggressive on pricing so it can still have some upside after the listing.”
Ma commented regarding expansion ahead the investors meeting: “After being listed in the U.S., we will develop our business in Europe and in the U.S. We will not give up the Asia market because, as I would say, we are not a company from China, we are an Internet company that happened to be in China.”
After being rejected by Hong Kong officials, Alibaba chose New York as the new site for its IPO. The offcials at Hong Kong rejected its request to allow a small group of company insiders to nominate the majority of its board.
“People say that Hong Kong lost the Alibaba deal. To me, I think it is Alibaba that missed this great opportunity to list in Hong Kong,” Ma added. “We love Hong Kong. We will continue to love Hong Kong and invest in Hong Kong.”
Alibaba’s IPO could raise as much as $24.3 billion including an over-allotment option, beating Agricultural Bank of China Ltd.’s $22.1 billion sale in 2010.
The much awaited debut on the New York Stock Exchange is planned under the name ‘BABA.’
While U.S.-based investors won’t get to order after 4 p.m. on Sept. 16, Alibaba will stop taking orders in Asia and Europe during their respective afternoons on Sept. 17, people said last week.
Alibaba spokeswoman Florence Shih declined to comment on the report.
The company is still in process to price the deal on September 18, and is expected to start trading a day later on September 19..