Alibaba IPO today at $68 a shareAlibaba to become the biggest US IPO in history2014-09-19 09:23 by Philip
Alibaba will trade under the symbol BABA today on the New Work Stock exchange, pricing its shares at $68, and will be raising $21.8 billion for the company and investors, becoming the biggest U.S. IPO in history. "It's going to bounce up quite a bit," says Francis Gaskins of Equities.com. The company and underwriter is pricing below the level of demand to make sure the shares trade higher, he says. "They want it to be successful." The $68-a-share IPO price values the entire company at $170.8 billion. That valuation would make Alibaba the 23rd most-valuable company in the Standard & Poor, ahead of other tech titans like Amazon at $150 billion and eBay at $65 billion. Alibaba will not be included in the S&P500, however, since it is not based in the U.S. In fact, Alibaba is listing with an unusual corporate structure that will allow its current partners to control the board of directors, leaving ordinary shareholders with very little influence. When investors buy Alibaba, they are actually purchasing shares in a Cayman Islands entity called Alibaba Group Holding Limited.But that company - surprise! - doesn't actually own Alibaba. Instead, Ma and another co-founder, Simon Xie, own most of Alibaba's biggest businesses according to Chinese law. Ma and Xie are then under contract to turn profits over to the Cayman entity. Check the current Alibaba stock price at Yahoo Finance here: BABA
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