the Chinesee-commercecompany, has received enough orders for shares in its record-breaking $21bn (£13bn) initial public offering to cover the entire deal more than a week before the flotation, according to people familiar with the IPO process.
There was no indication as to where most of that demand was in the $60-66 per share indicative price range for the shares, said the people, who could not be named because details of the offering demand are not yet public. Alibaba declined to comment.
At the peak of expectations, the float would raise $21.1bn, exceeding Facebook's $16bn listing in 2012 as the largest technology IPO.
Alibaba could also set a record for the world's biggest IPO if underwriters exercise an option to sell additional shares to meet demand – putting it as high as $24.3bn and overtaking Agricultural Bank ofChina's $22.1bn listing in 2010.
The company launched its IPO on Monday and is expected to price the deal on 18 September. Its co-founder and executive chairman,Jack Ma, has spoken with investors in New York and Boston this week to outline the company's growth strategies and address concerns over corporate governance.
Alibaba has kept tight control over the IPO, leaving a vacuum at the helm of the group of banks managing the offering – a move that has led to a complicated arrangement and left some bankers complaining that it has created additional layers of work, according to people familiar with the situation.
Source: The Guardian