Alibaba prices at $68, becomes top U.S. IPO

10 years ago | Posted in: Business | 638 Views

Alibaba priced its shares at $68 apiece Thursday, raising $21.8 billion for the company and investors, and solidifying its stature as the biggest U.S. IPO in history.

The stock is to trade under the symbol BABA Friday on the New York Stock Exchange. While initial investors paid $68 a share, pricing confirmed by Renaissance Capital, strong demand for the stock indicates it could move higher when trading begins and the masses pile in.

“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 pricing comes in at the top of the latest expected price range of between $66 and $68 a share and well ahead of the initial expected range of $60 to $66. By raising $21.8 billion from the deal, the IPO tops Visa’s $17.9 billion offering in 2008, which was previously the U.S.’s No. 1, says Renaissance Capital, which manages an initial public offering exchange-traded fund…. see more

source: usatoday

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