Alibaba US IPO could be one of the biggest in IPOs in the history of the United States as Alibaba has fixed their eyes at $1billion in Public Initial Offering (IPO).
The Alibaba IPO fundraising amount could be one of the highest in the US as the company has filed the necessary documents to set the ball rolling. Alibaba is an e-com company from China. It was a move that was pretty much on the cards and now the process has got underway.
Before this, there was the IPO from Twitter. The initial investors raised amount of $1.8 billion in the debut of the online short messaging service. Twitter had made its debut in the market in last year’s fall.
How much money is the Alibaba US IPO is likely to raise is a matter of time. This depends on the demand of the investors. A couple of years ago, Facebook – the leading social networking site in the world had managed to raise a whopping $16 billion.
Alibaba US IPO stock
However, as far as Alibaba’s target is concerned, they haven’t disclosed how much stock they are going to sell. They haven’t even set a price range, it is understood. There are many more details that need to be known. But, they are likely to be disclosed only when IPO keeps on progressing.
The entire developments will require around four months. It is only after that Alibaba will start trading.
E-com in China has provided easy access to hundreds of thousands of households to various items like books, electronic devices and cloths among many others. It was back in the 1980s that consumers needed ration tickets to have supermarket articles. Alibaba made things easier with the introduction of Alipay – the company’s online payment method. This was enough to bridge the gap for those consumers who didn’t know any credit card.
The internet companies that did well with the stocks in the previous year didn’t see the same amount of growth this year. Investors are becoming very choosy and cautious when it comes to investing. Twitter is a great example of this. The Twitter stocks saw a peak of $74.73 towards the end of the last year.
However, they have lost more than 50% of the value and on Tuesday, the shares cost $31.85, which is a tad more than the IPO price of $26. It now remains to be seen how the Alibaba US IPO performs.