Alibaba Share Prices Increase Ahead Of Its IPO

Alibaba Share Prices Increase Ahead Of Its IPO

Share prices of Alibaba were increased recently ahead of its initial public offering in the IS stock market. An amended F-1 filing was filed by the company showing a new price range of between $66 and $68 per share.

The e-commerce company based its decision in increasing its share prices on a tremendous demand among investors, according to an anonymous source. The company did not release any statements in connection to the increase in share prices.

The previous price range for the shares of the company was from $60 to $66. The initial public offering had the potential of raising $24.3 billion, which is the biggest initial public offering in the US. The new price of the shares is expected to allow the company to raise at least $25 billion.

Facebook carries the current record in the largest Internet public offering in the US stock market. Facebook raised around $16 billion in its IPO in 2012. The IPO of Alibaba can surpass the IPO of Facebook along with Visa, which holds the biggest IPO record in the history of the US stock market when it raised $19.1 billion in 2008.

The shares of Alibaba will carry the “BABA” symbol at the New York Stock Exchange. Although the company is not well-known in the US, it has dominated the Internet retail market in China.

The strong growth of the company was mainly due to its dominance in the Chinese market. An increase of 66 percent was noted in the revenues of the company in the fourth quarter of 2013. The international expansion of the company is expected to pose a threat to online retailers like eBay and Amazon.

A new marketplace, 11 Main, was launched by the company last June. Although it is expected to compete in the US market, it remains uncertain if it will become popular among merchants and consumers. Jack Ma, founder of Alibaba, revealed that the company is aiming to increase its presence in the US and European internet market in the near future.

Posted by James Fried on Saturday September 20 2014, 1:58 AM EST. Ref: CNET. Link. All trademarks acknowledged. Filed under Featured News, Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0