Global Sun Solutions: Sheer weight of demand may prompt Chinese internet giant Alibaba to increase the size of it US initial public offering.
East Shenzhen, China – Global Sun Solutions has reported that Chinese e-commerce giant, Alibaba Group Holdings, is said to be planning to increase the size of its initial public offering after experiencing what it called “overwhelming” demand for its stock just two days after publishing the quantity of shares to be offered and the price range.
The deal’s underwriters are said to be seriously considering exercising an option to sell more shares in order to meet demand. This would push the IPO’s value to as high as $24.3 billion compared to the $21.1 billion originally planned making it the largest IPO in world history.
“We were never in any doubt that this IPO would be oversubscribed but this has surpassed out expectations,” said Steven Aaron, VP at Global Sun Solutions. “We’re acquiring stock on behalf of our institutional and private clients at the $60-66 range but we wouldn’t be surprised if the extra tranche of stock had a bigger price tag attached,” he added.
Alibaba and some of its key shareholders including Yahoo Inc. and SoftBank offered 320.1 million ADS (American Depositary Shares) at the $660-$66 range and the company will likely file an amendment to its official IPO documentation to add more shares at what some suggest will be north of the $70 mark. Stock will begin trading publicly on September 19 on the NYSE.
“There is almost certainly going to be a pop in these shares come Friday morning and we expect it to keep rising, possibly to as high as $90,” continued Aaron.
Global Sun Solutions says it expects Alibaba to use the funds from the IPO for acquisitions as it continues its efforts to plug weaknesses in its business including mobile and video content.
About Global Sun Solutions:
Be they within equities, commodities, fixed income products or “special situations” like initial public offerings, opportunities arise regularly but, in order to be positioned favorably, one must possess the ability to identify them in a timely manner.
Since 2010, Global Sun Solutions has produced returns that have beaten the best global indices by a comfortable margin. Despite this enviable performance and the subsequent growth in our roster of client referrals, we have not rested on our laurels. Instead, we continue to find ways to improve the returns and the first-class service we provide to you, our valued clients.
Contact Global Sun Solutions:
16/C China Resources Building
5001 Shennan Road,
East Shenzhen
518010
Phone: 8675586243853
Web: www.globalsunsolutions.com
Email: info@globalsunsolutions.com