Alibaba IPO: Company postpones roadshow for one week

on Sep 1, 2014
Updated: Apr 9, 2020
Listen, Monday, September 1: Alibaba Group Holding Ltdis postponing the start of its highly-anticipating initial public offering in the US, according to reports in the media.

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Citing an unnamed source familiar with the matter, The New York Times reported on Friday, the Chinese e-commerce behemoth would commence the roadshow for the float in the week of September 8, about a week later than had previously been suggested. Under the latest timetable, Alibaba would hope to price its stock sale toward the latter half of the following week, the paper said.

A separate report by Bloomberg suggested that the company’s market debut would take place on September 19, with a tentative pricing on September 18.
**‘More time’**
Various media reports last month suggested that Alibaba was considering starting the marketing campaign for its IPO on September 3 and kicking off the float on September 16 (Alibaba IPO Date: Company considers starting float roadshow on September 3). But according to the latest timetable, meetings with investors would start a week later and the campaign would be shorter than the two weeks previously suggested.

According to an unnamed source cited by Bloomberg, the roadshow is being postponed because Alibaba needs to answer questions posed by the US Securities and Exchange Commission. The company has been in discussions with the SEC and has already amended its prospectus several times to address questions raised by the regulator.
According to Li Muzhi, a Hong Kong-based analyst at Arete Research Service LLP, the delay shouldn’t be a problem.

Bloomberg quoted the analyst, as observing: “There shouldn’t be any obstacles for proceeding with the IPO. This just gives them a bit more time.”
Alibaba’s float is expected to become the largest-ever IPO of a technology company, with analysts estimating that it could raise as much as $20 billion. If the most optimistic estimates turn out to be correct, the Chinese company’s float would surpass Visa Inc.’s $19.65 billion IPO in 2008 and become the biggest in US history, according to data compiled by Bloomberg. The average estimate of five analysts polled by the newswire last month suggests the firm would set its IPO value at $154 billion, or 22 percent below analyst valuations, in a move that could avoid repeating Facebook Inc‘s (NASDAQ:FB) dismal stock market debut.


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