Alibaba stock price hits fresh record highs as Ant’s IPO raises record $34.5 billion

Shares of Alibaba (NYSE: BABA) logged fresh record highs as Ant Group, which is controlled by Alibaba, recorded the world’s largest IPO ever. 

Fundamental analysis: Record IPO amid strong demand

Ant Group, the Chinese tech giant, is set to close its initial public offering (IPO) to investors a day earlier than previously planned amid strong demand. This way, the book-building process in Hong Kong will close at 5 p.m. local time on Wednesday, 24 hours earlier than planned.

Ant Group decided to list its shares in both Shanghai and Hong Kong to raise about $34.5 billion and value the company at $312 billion. The fintech firm will see its shares go public on November 05.

The IPO previously received a green light from both the China Securities Regulatory Commission and the Hong Kong Stock Exchange. Alibaba said it will purchase 730 million A-shares through its subsidiary Zhejiang Tmall Technology to uphold its 33% stake.

In the first nine months of this year, the number of its active Alipay users rose 711 million in June to 731 million in September. Moreover, revenue rose about 42% to 118.19 billion yuan ($17.73 billion) compared to a year ago. 

Technical analysis: New all-time high posted

Alibaba stock price closed 0.98% lower yesterday despite logging the new all-time high at $315.46 earlier in the session. Still, the buyers are pushing higher today on positive news related to Ant’s IPO. 

A deeper pullback to the $300 area is likely to be seen as an opportunity to buy Alibaba shares. This zone hosts the previous all-time high, set in August, and will now act as strong support. On the upside, the next target is $320.

Summary

Ant Group has been forced to close its IPO a day earlier amid strong demand for its shares. The fintech firm, in which Alibaba holds a 33% stake, recorded the biggest ever IPO.