Technology

Alibaba Roadshow Kickoff: What You Really Need to Know

Alibaba HQ
Courtesy Alibaba Group
Persuading investors to buy 320.1 million shares at a price of $60 to $66 a share is a task that Alibaba Group Holding Inc. figures will take nine working days. The company’s roadshow begins Monday, September 8, and winds up on Thursday September 18, the date on which the stock is expected to price. Trading is planned to start the next day on the New York Stock Exchange under the ticker symbol BABA.

Here are the stops along the roadshow route:

  • September 8: New York
  • September 9: Boston
  • September 10: Baltimore/New York
  • September 11: Denver/Los Angeles
  • September 12: San Francisco
  • September 15: Hong Kong
  • September 16: Singapore/Hong Kong
  • September 17: London
  • September 18: New York/Kansas City/Chicago/Pricing

As we noted last Friday, company founder and CEO Jack Ma is selling 12.75 million shares and reducing his stake in the company from 8.8% to 7.8%. Yahoo! Inc. (NASDAQ: YHOO) is selling 121.74 million shares, reducing its stake from 22.4% to 16.3%. The other major shareholder is Japan’s SoftBank, which owns 797.74 million shares (34.1%) and is selling none of them.

Lead underwriters for the offering include Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Morgan Stanley and Citigroup. The underwriters have an option on an additional 48.02 million shares. Assuming the underwriters take their options, Alibaba could raise $23.4 billion at the mid-point of the IPO’s price range, and the company’s value would be around $160 billion, putting it about even with the U.S. company it is most often compared with, Amazon.com Inc. (NASDAQ: AMZN).

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