Alibaba IPO Roadshow Starts: First To Attract 800 Investors

According to a participant, a total of 800 investors participated in the roadshow.

Another participant said that Alibaba provided a fast food in the roadshow of the day, then carried out a video demonstration, followed by the introduction of Ma Yun, founder of Alibaba group.

Finally, investors were able to ask Alibaba CFO Wu Wei and vice chairman Cai Chongxin.

Nearly 10 days of roadshow activities will be held in an attempt to attract demand for the record IPO (IPO).

The company plans to sell $21 billion 100 million in stock in the IPO with a valuation of $162 billion 700 million.

This will also make Alibaba the third largest Internet Co in the US, second only to Google and Facebook.

However, to attract more investors to participate in IPO, Alibaba has more work to do: two investors who took part in the first day's roadshow said they hoped Alibaba could disclose more information about the international expansion plan.

The spokesman declined to comment.

YAHOO rise

According to people familiar with the matter, Alibaba executives arrived at Citigroup headquarters at 6 a. m. on the morning of the roadshow, when 300 Citigroup salesmen were trained.

At 11:45 a.m., nearly one hour before the road show, the hall outside the Waldorf hotel was packed with people waiting for the 18 floor roadshow lunch to begin.

By 12:30 noon, the queuing crowd continued to flow, and the meeting was delayed for 30 minutes.

YAHOO, which will sell $8 billion of shares in the IPO, also rose on Monday.

Shares of the company rose about 5.6% on that day, more than half of which was achieved after the Alibaba IPO roadshow began.

Roadshow process

Packed with large meetings, they got a bag of sandwiches and an orange and yellow prospectus.

Brady Dugan, a Credit Suisse CEO (Brady Dougan), gave an introductory presentation. Ma Yun then appeared and introduced the company's vision.

But people familiar with the matter say Ma will not take part in all roadshow activities all the way.

Other executives later showed slides and highlighted the data in the prospectus.

Iman Khan, head of Credit Suisse Internet investment bank, chaired the electronic Q & a session.

At the end of the exhibition, investors on the stage were able to ask questions directly to Alibaba executives.

But before buying Alibaba shares, investors must fully weigh the risks.

The company's corporate governance structure gives the 30 partners the right to nominate the majority of directors.

Alibaba has recruited 20 investment banks and brokerages for the IPO, including J.P. Morgan chase, DBS bank and Mizuho Financial Group.

Alibaba will also travel to Boston and San Francisco for roadshows this week, and next week will go to Hongkong road show.

For investors unable to participate in road shows, Cai Chongxin and Wuwei ha will be promoted through Internet channels.

Cai Chongxin is responsible for explaining the growth strategy of Alibaba, and Wu Wei is responsible for explaining the financial problems.

Inquiry method

Alibaba plans to decide the final issue price in September 18th and will be listed on the following day.

The Alibaba will use a cumulative bid inquiry (bookbuilding) method to collect non binding bids from investment banks to fund managers to determine the specific needs of each price.

The prospectus shows that Alibaba shareholders, including YAHOO, Cai Chongxin and Ma Yun, are planning to sell 320 million 100 thousand shares at a price of 60 to 66 dollars per share.

Deutsche Bank, Goldman Sachs Group and Morgan Stanley will also take part in Alibaba's IPO.