LOS ANGELES (dpa) – Chinese e-commerce giant Alibaba has received so many orders from investors for what is expected to be the largest US stock launch ever, that it may close off orders early, news reports said Friday.
Order books could be closed by Tuesday in the US and by Wednesday in Europe and Asia ahead of its initial public offering (IPO), Bloomberg news said, quoting people with knowledge of the matter. The New York Times also reported all orders for the initial public offering were to close by Wednesday, according to people with knowledge of the matter. Alibaba has said it will set a final price for the shares on Thursday, one day after sales will close, according to Bloomberg.
Trading will begin the next day, the unidentified person told the news agency.
The US Securities Exchange Commission said late last week that Alibaba was planning to raise a record 24.3-billion-dollar in its debut on the US stock market, and since Monday the Internet giant has been on a roadshow to convince potential investors of its worth.
The company plans to offer 320 million shares, which will be only part of the company. The per share price is expected to be between 60 and 66 dollars.
Since it will be offering only a part of its company in the stock sale, those initial public offering (IPO) prices could give the company a total market value of 163 billion dollars.
By comparison, the highest-valued company in the world, Apple, has a market capitalisation of 592 billion dollars.