Chuan Ali Fastest Start IPO Process At The End Of This Month.
Chinese electricity supplier The Alibaba plans to launch the IPO (IPO) process as soon as possible at the end of this month.
Alibaba will raise over $20 billion in IPO and become the largest IPO ever. According to sources, Alibaba has shared the IPO timetable with its current investors by e-mail. The email officially confirmed the time plan of Alibaba IPO, which had already been speculated many times before.
However, this email still indicates that the specific time depends on the market conditions. Usually, the IPO process on this scale takes about 2 weeks, including roadshows. This means that if all goes well, Alibaba shares will be listed on the New York stock exchange as early as mid August. If you choose the time in mid August, you will avoid the end of the summer holiday in the US banking industry.
The US IPO market is recovering. According to data provider Dealogic, the number and amount of IPO in the US stock market this year hit a record high since 2000. Recently, a number of Chinese technology companies have risen sharply after IPO. Jingdong has risen 46% since its IPO in May, and micro-blog's share price has risen 13% since April IPO.
Alibaba has developed rapidly in recent years, and its profitability is very strong. In the fiscal year ending March 31st, Alibaba's net profit was $3 billion 700 million, and its revenue was $8 billion 400 million.
The source said that in the mail sent by Alibaba, Alibaba asked investors to agree to the standard "lock in" period. This means that these investors are not allowed to sell shares within 180 days of Alibaba IPO.
The final size and valuation of Alibaba IPO will depend on the share price of Alibaba and how many shares the Alibaba company and its investors will sell. Alibaba and its IPO Underwriters will discuss these topics this month.
Alibaba's IPO will also bring a lot of revenue to Wall Street. At present, Alibaba has selected 6 underwriters, including Swiss credit, Deutsche Bank, Goldman Sachs, J.P. Morgan chase, Morgan Stanley and Citigroup. According to sources, during the course of investor roadshow, Alibaba plans to hold several meetings in Asia, North America and Europe.
The Alibaba submitted the IPO document to the US Securities and Exchange Commission (SEC) in May this year, and then made two updates to the document. SEC usually takes 2 to 3 months to evaluate IPO documents before allowing a listed company to determine its share price and sell shares. It is unclear whether SEC has completed the approval of Alibaba.
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