Alibaba'S IPO Price Of $68 May Set The World'S Largest IPO Record

Here in the world Clothing shoes and hats Alibaba's IPO price is $68, which may set the world's largest IPO record.

On September 19, Alibaba (Baba Store) Group announced on Friday that the company will finally determine the IPO (initial public offering) price as $68 per share, equivalent to the upper limit of the previous pricing range of $66-68, and plans to raise $21.8 billion. This amount of capital raised is close to the historical record of USD22 billion set by Agricultural Bank of China [0.40% Capital Research Report], and it is the largest IPO in the history of U.S. stocks

Alibaba will be officially listed on the New York Stock Exchange on September 19, with the stock code of BABA. If the underwriter exercises the over subscription right, the maximum raised capital this time will reach US $25.02 billion. The IPO income will be attributed to Alibaba Group and its executives and early investors. According to the IPO price of Alibaba Group, Alibaba's market value will reach US $168 billion, which will make it one of the companies with the highest listing value in the US market, which also exceeds Amazon's US $150 billion.

According to the prospectus, 320 million American Depositary Shares (ADSs) will be sold in this IPO, of which 123076931 ADSs will be sold by Alibaba; At the same time, including major shareholders Yahoo and Alibaba The selling shareholders, including Ma Yun, Chairman of the Board of Directors of the Group, and Cai Chongxin, Executive Vice Chairman, will provide a total of 197029169 ADSs. Alibaba Group promises that it will not receive any income from the sale of ADSs by these selling shareholders.

According to the agreement, Yahoo America will sell 4.9% of the total shares of Alibaba Group, and Yahoo America will still hold about 16.3% of the shares of Alibaba Group after the sale. Softbank will not sell shares.

Alibaba Group shareholders will sell 197 million shares in this IPO. Among them, Jack Ma, Chairman of the Board of Directors of Alibaba Group, will sell 12.75 million shares, accounting for about 0.5% of the total shares of Alibaba Group; Meanwhile, Cai Chongxin, Executive Vice Chairman of the Board of Directors of Alibaba Group, will also sell 4.25 million shares.

Since Alibaba launched its global roadshow on September 9, investors have been subscribing to the stock. According to the news, the number of stock subscriptions received in only two days has exceeded its issuance scale. According to underwriter information, Alibaba received a subscription application of $20 billion in just three minutes.

The market expects that under this circumstance, Alibaba will launch the green shoe mechanism, that is, over allotment of 15% of the shares, about 48 million shares. If the listing underwriter exercises the over subscription right, Alibaba will raise up to US $25.02 billion in listing financing, surpassing the US $22.1 billion set by the Agricultural Bank of China when it was listed in Shanghai and Hong Kong in 2010 financing Scale, setting the world's largest IPO record.