Alibaba ups IPO price, may raise over $25B

Chinese e-commerce giant Alibaba Group Holding Ltd, the world’s largest e-com firm by value of goods sold online, has upped the price band for its upcoming initial public offer (IPO) through issue of American Depository Receipts (ADR). It has now priced the issue in the band of $66-68 a share, up from $60-66 each disclosed early this month.

At the upper end of the price band Alibaba will be able to raise as much as $25.03 billion including the additional shares reserved for the underwriters.

Over half of the issue proceeds would go to its selling shareholders including founder and chief Jack Ma besides strategic investor Yahoo. These existing shareholders would get $13.4 billion from the issue, which would value Alibaba at $165.4 billion at the upper end of the price band.

Amazon Inc has a market cap of $153.02 billion.

The company estimates that it will receive net proceeds of approximately $8.13 billion after deducting estimated underwriting discounts and commissions and the estimated offering expenses based upon an assumed IPO price of $67 per ADS (the mid-point of the estimated range of the issue offering).

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