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Wednesday, September 10, 2014, 15:25

Alibaba's record IPO 'oversubscribed'

By Reuters
Alibaba's record IPO 'oversubscribed'

Jack Ma, founder and executive chairman of Alibaba Group Holding Ltd, leaves following the company's roadshow in New York on Monday. (Photo / Agencies)

Alibaba Group Holding Ltd has received enough orders for its record-breaking initial public offering to cover the entire deal within just two days of its launch, people familiar with the IPO process said on Wednesday.

There was no indication as to where most of that demand was in the US$60-US$66 per share indicative range for the IPO, said the people, who couldn't be named because details of the offering demand aren't yet public.

Alibaba, a Chinese e-commerce titan, declined to comment when contacted by Reuters.

At the top end of expectations, the Alibaba IPO would raise US$21.1 billion, topping Facebook Inc's US$16 billion listing in 2012 as the largest-ever technology IPO.

Alibaba, could set a new record for the world's biggest IPO if underwriters exercise an option to sell additional shares to meet demand - putting it as high as US$24.3 billion, and overtaking Agricultural Bank of China Ltd's US$22.1 billion listing in 2010.

The company launched its IPO on Monday and is expected to price the deal on Sept 18.

Co-founder and executive chairman Jack Ma has spoken with investors in New York and Boston so far this week, presenting the company's growth strategies and addressing concerns over its corporate governance.

Alibaba has kept tight control over the IPO, leaving a vacuum at the helm of the group of banks managing the offering - a move that has led to a complicated arrangement and left some bankers complaining it has created additional layers of work, according to people familiar with the situation.

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