The excitement on Wall Street is becoming palpable as investors, analysts and observers watch carefully what magic the Chinese on-line giant Alibaba is going to create when it launches its initial public offering.
Some are saying the stock-offering will break records as it ventures to expand its already huge role as a global company looking to tap into its incredible growth potential. It is expected that the IPO will bring in to the company anywhere from $19 billion to $24 billion, and it could happen as soon as next week. The company’s symbol of the NYSE will be “BABA.”
If those numbers are realized then Alibaba would reach a market value of between $148 and $163 billion, about the size of the US-based Amazon, another on-line mega-company. There are analysts who counter that the company could actually be worth $200 billion, or even more.
Portfolio manager at Meeshaert Financial Services, Gregori Volokhine says that the firm could still raise their price range before the IPO launches:
“They have moved prudently, because it’s very difficult to know in advance the appetite of US institutional investors,” Volokhine said.
It is unclear if investors are proceeding with caution, remembering the disappointment of the much heralded Facebook IPO.
“People will be cautious because a lot of investors were burned by Facebook,” he said, alluding to the 2012 IPO which ended with a large price decline from the opening price.
Nevertheless, many are expecting Alibaba’s IPO to break the all-time existing record of $22.1 billion which was raised by Agricultural Bank of China in 2010 in Hong Kong and Shanghai.