Alibaba IPO: E-commerce giant could float in early August: CNBC

on May 20, 2014
Updated: Apr 9, 2020
Listen, Tuesday, May 20: Alibaba Group’s initial public offering may kick off in the first full week of August, CNBC reported yesterday, citing unnamed sources familiar with the matter.

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The Chinese e-commerce giant earlier this month filed its F-1 form with the US Securities and Exchange Commission, taking the first step in what could become the largest-ever IPO of a technology company (Alibaba IPO could be largest ever tech float). The document is currently being reviewed by the regulator. The SEC traditionally perform a thorough check in order to make sure that companies filing to go public detail their revenue sources and disclose risks appropriately and accurately.

According to the sources cited by CNBC, feedback from the agency could come as soon as June 7, after which Alibaba would likely take a few weeks to respond to any issues that might have been raised. If the e-commerce business is able to satisfy any concerns raised by the SEC, the company might float in the first full week of August, the sources added.

**Lucky 8?**
There is speculation that Alibaba might choose August 8 to make its first trade, as the number eight is considered lucky in Chinese culture, CNBC’s reporter Kayla Tausche said. However, the fact that August 8 is a Friday would prevent Alibaba’s stock from being traded in Asian markets, which makes a mid-week public debut more likely, Tausche noted.

According to the sources, if Alibaba’s IPO does not happen within that time frame, the company would likely postpone its stock market debut until after the US Labour Day holiday in September, when investors return from their summer vacation.
**Massive float**
Alibaba’s IPO plans have generated strong interest among investors, who want some exposure to the Chinese e-commerce giant. Alibaba, which powers 80 percent of all online commerce in the People’s Republic, said in its SEC filing that it intended to raise $1 billion in the IPO, but expectations are for a much higher sum. The Chinese company is expected to raise from $15 billion to $20 billion in the float, which means that it could top Facebook Inc’s (NASDAQ:FB) $16-billion stock market debut in May, 2012.


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