China’s Alibaba E-Commerce Company to Raise $21.8 Billion in Record US IPO: Reports

Subscribe
Alibaba Group Holding Ltd. (BABA), a Chinese e-commerce company, has sold 320.1 million shares for $68 each, raising a record $21.8 billion in a US initial public offering (IPO), Bloomberg reported Friday.

MOSCOW, September 19 (RIA Novosti) – Alibaba Group Holding Ltd. (BABA), a Chinese e-commerce company, has sold 320.1 million shares for $68 each, raising a record $21.8 billion in a US initial public offering (IPO), Bloomberg reported Friday.

"The sale - which values Alibaba at $167.6 billion - is already the largest by any company in the US and has the potential to break the global record if additional shares are sold to underwriters," Bloomberg notes.

"This isn't a situation where you'd see a high-growth company fall down to earth - it's a very sustainable business model," Eric Brock, a portfolio manager at Clough Capital Partners, which oversees more than $4.5 billion in assets including the Clough China Fund, said Friday as quoted by Bloomberg.

Alibaba was founded by Jack MA, a former English teacher, in 1999 and has profited from China's consumer class by dominating the e-commerce industry in the country. The company's board is controlled by a small group of insiders.

The Yahoo company, which is one of Alibaba's shareholders, could raise about $8.3 billion at the offering price if it sells 121.7 million of its shares in the IPO, which will trim its stake in Alibaba from 22.4 to 16.3 percent.

Alibaba's largest shareholder, the Japanese SoftBank, does not plan to sell shares and will have a 32.4 percent stake after the offering.

Alibaba will be listed on the New York Stock Exchange (NYSE) under the BABA symbol starting Friday.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала