Alibaba to begin IPO roadshow in Hong Kong, S’pore
HONG KONG — Chinese e-commerce giant Alibaba is weighing a plan to start marketing to investors on Sept 3 what is expected to become the United States’ largest initial public offering, with management travelling across Asia, Europe and the US.
HONG KONG — Chinese e-commerce giant Alibaba is weighing a plan to start marketing to investors on Sept 3 what is expected to become the United States’ largest initial public offering, with management travelling across Asia, Europe and the US.
The schedule, put forth by banks managing the IPO, would have meetings begin in Hong Kong and Singapore before executives travel to London and eventually host their first US event in New York on Sept 8, people with knowledge of the matter said. The timeline has Alibaba targeting a Sept 16 trading debut, the people said.
The investor meetings will give Alibaba the opportunity to answer questions from the world’s biggest fund managers and build demand for its shares. With Alibaba and selling shareholders expected to raise as much as US$20 billion (S$25 billion), the IPO has the potential to be the largest in the US. The firm’s official price range is expected to be revealed on Sept 2.
For trading to start on Sept 16, Alibaba would have to set a final price the day before — a Monday. It is uncommon for companies in the US to price IPOs on a Monday, in case news over the weekend negatively impacts market sentiment on the final day of the deal.
With six financial advisers already managing the sale, Alibaba plans to name additional banks that will have smaller roles on the deal, the sources said. Credit Suisse Group, Deutsche Bank, Goldman Sachs Group, JPMorgan Chase, Morgan Stanley and Citigroup are the most senior banks on the IPO. Alibaba may end up using more than 20 financial advisers in total, one person said. BLOOMBERG