Alibaba ups share price in coming IPO
Now the biggest stock listing ever at $25B US
Chinese e-commerce firm Alibaba has raised the share price and the amount of money it will raise in an IPO later this week.
Alibaba now plans to raise up to $25.03 billion US in its upcoming IPO, making what was expected to be the biggest stock market debut even bigger.
The company says it plans to sell 368.1 million shares at $66 to $68 apiece, according to a regulatory filing. Previously it had set the range for $60 to $66 apiece.
Alibaba has emerged as a hot commodity because of its e-commerce bazaar, a shopping magnet for businesses and consumers alike as China's economy steadily grows. The company's network of sites includes Taobao, Tmall, and AliExpress, as well as Alibaba.
Most of Alibaba's 279 million active buyers visit the sites at least once a month on smartphones and other mobile devices, making the company attractive to investors as computing shifts away from laptop and desktop machines.
Investors have been salivating over the trifecta of growth that Alibaba offers: "There are very few companies that are this big, grow this fast, and are this profitable," said Wedbush analyst Gil Luria. He initiated coverage on the company with a 12-month price target of $80.
The company's revenue in its latest quarter ending in June surged 46 per cent from last year to $2.54 billion while its earnings climbed 60 per cent to nearly $1.2 billion, after subtracting a one-time gain and certain other items.
Alibaba has been meeting with potential investors over the past week, and demand spurred the increase. Alibaba is expected to start trading Friday under the ticker `BABA' on the NYSE.