Ali Or Boot Green Shoe Mechanism Is Expected To Be Included In The Index Global Stock Index

　　 Alibaba (Baba store) will be officially launched on Friday (September 19th) at the NYSE. In September 18th, Alibaba will give final pricing to the stock price. Without accident, Alibaba will become the largest financing IPO. in the history of the United States.

The roadshow has been frantically subscribed or launched the "green shoe mechanism".

Alibaba's roadshow reaction is more active than imagined. After nearly a week's opening of the roadshow, Alibaba received more than the number of shares subscribed. Media quoted the lead underwriter information, Alibaba only received 3 minutes to receive $20 billion subscription applications.

Despite the purchase threshold Up to 1 million yuan, but within a week the product has been sold for billions of dollars. The market expects that under the circumstances, Alibaba will launch the green shoe mechanism, that is, over 15% of the shares will be allotment, about 48 million shares.

According to the prospectus, the Alibaba will issue 320 million US depositary receipts with an issue price range of US $60 to US $66. The scale of the fund-raising will reach US $21 billion 100 million. If we calculate the maximum 15% allotment plan, the scale of financing will rise to US $24 billion 300 million.

People close to Alibaba said that due to the hot subscription, Alibaba has announced through internal mail that the company began to raise the fair value of common shares to $63 in September 6th.

In addition, the Alibaba went to the roadshow on Monday. But in the invitation, the list of management did not include chairman Ma Yun. Only 5 people, including Vice President Cai Chongxin and chief executive Lu Zhaoxi, will be present.

S & P Dow Jones: Alibaba is expected to be included in the index global stock index

The S & P Dow Jones Index said during the weekend that the Alibaba group has been registered as China and Alibaba shares are expected to be included. China The global index of stocks. Some of the indices compiled by the S & P Dow Jones index have been highly tracked worldwide.

The S & P Dow Jones Index said in a statement that the move means Alibaba shares will be viewed to include the S & P China wide market (BMI), the S & P emerging market and the S & P global index.

If Alibaba is included in the above index, fund managers who follow these indices as indicators of funds around the world will need to buy Alibaba shares.

If the Underwriters implement the excess placement option to meet the demand, the Alibaba may set a new record of the world's largest IPO, which is the highest or 24 billion 300 million US dollars, and surpassed the $22 billion 100 million raised by the Agricultural Bank of China in 2010.

But if anyone wants to know if Alibaba will choose the S & P 500 index, the answer is No.

"Alibaba is not suitable for the S & P 500 index because it is not an American company," said David Blitzer, managing director of the S & P Dow Jones index and chairman of the index Committee.

According to the press release of S&P, Alibaba will be defined as a Chinese company with various indices for tracking Chinese stocks.

S & P website information shows that over $5 trillion and 100 billion of assets are based on the S & P 500 index. Alibaba IPO valuation is expected to reach 162 billion 700 million dollars, more than 95% of the S & P 500 Index constituent stocks.

Alibaba will be the third largest Internet company in the US stock market, second only to Google and Facebook., according to the guidance price range.

Marshall Front, chief investment officer of Front Barnett Associates LLC, said: "some emerging market funds and Alibaba that hold Alibaba may be held for a short time, but later you will find that there is no difference. I hope that the retail investors may have to go to the IPO market to take a chance, or wait for the stock to go public."