Investors Going Gaga for Alibaba [ZT]
Sept 16, 2014
It was the amended F-1 filing that just about everyone saw coming. After the close, Alibaba Group (BABA) announced that it will be raising the price range for its IPO to $66-$68 from $60-$66.
The world's largest e-commerce site is slated to make its debut as a publicly-traded company on the NYSE on Friday.
A total of 320,106,100 American Depository Shares will be offered by Alibaba and certain selling shareholders, including Yahoo (YHOO), which has a 23% ownership stake in the company. Underwriters, meanwhile, have a right to purchase up to an aggregate of 48,015,900 additional ADSs.
With the increased price range, Alibaba will soon hold the title of being the largest technology IPO ever.
A New York Times article indicates the order book for the IPO is "significantly oversubscribed" and that underwriters will start closing order books this afternoon. The same article highlights how many money managers are putting in huge orders in an attempt to get just a small allotment.
We suspect some of that bidding is a function of underperforming money managers chasing what they hope will be a hot, short-term return, only Alibaba has reportedly kept its price range in check in an effort to attract long-term holders and to avoid the quick flipping of its shares.
On Monday, it was suggested that the broad-based weakness in many of the technology sector's momentum stocks was a result of money managers selling some tech holdings to make way for the new supply coming from the Alibaba IPO.
It's hard to say for sure, yet there's no denying that a lot of anxious investors are going gaga for BABA. |
发表于 2014-9-16 08:11
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