Crest View International Noted That Alibaba Price IPO At $68 Per Share
Crest View International noted that Chinese e-commerce company Alibaba priced its U.S. initial public offering for $68 per share—at the top of the expected range.
Alibaba, which not only dominates the market in its home country but also has designs to expand aggressively abroad, is expected to begin trading at the New York Stock Exchange Friday morning under the ticker BABA.
Crest View International analysts suggested that If Alibaba’s offering plans have not changed, a $68 per share IPO will have raised $21.77 billion and valued the company at $167.62 billion.
The meeting of underwriters and Alibaba executives took place at Citigroup, Crest View International sources tell Reuters. All told, the meeting lasted about 45 minutes, and the discussion was about the company’s future, not the IPO prices, sources said.
Softbank CEO Masayoshi Son and Yahoo Chief Development Officer Jackie Reses were special guests at this meeting, sources said, and they both gave speeches about the company’s commitment to long-term shareholder value.
“Slated to be the largest IPO in world history, Alibaba’s offering has been compared to Facebook’s, which was mired by technological and filing hiccups that saw the price initially fall.” Commented Robert Woods, Senior Vice President at Crest View International.
The firm was expected to price within a range of $66 to $68, with advisors recommending $68.
Still, traders are watching the stock closely, as there are several unusual characteristics of Friday’s expected IPO. Chief among them, the U.S. listed shares won’t actually correlate to a stake in Alibaba—instead, the stock will be tied to a Cayman Islands-based holding company connected to Alibaba’s profits.
Originally an English teacher who failed the college entrance exam twice, Chinese entrepreneur Jack Ma founded Alibaba in 1999.
Many attribute Alibaba’s early success in dominating the Chinese markets to Ma’s secure payments system Alipay, which was recently spun off from Alibaba Group.
For more information please visit Crest View International.