Alibaba to raise IPO price on strong demand

Chinese ecommerce company to increase price ceiling from $66 to just below $70

Alibaba’s billionaire founder Jack Ma. Photograph: Brent Lewin/Bloomberg

Alibaba’s billionaire founder Jack Ma. Photograph: Brent Lewin/Bloomberg

 

Alibaba Group Holding Ltd plans to boost the price of its initial public offering amid strong investor demand, potentially making it the biggest in history.

China’s biggest ecommerce company plans to increase the top end of a marketed price range to just below $70, from $66, according to sources familiar with the matter. Alibaba’s decision came even as its billionaire founder, Jack Ma, told prospective investors in Hong Kong that he won’t seek too high a valuation. Ma reportedly said that the company tried to price fairly the November 2007 sale of its business-to-business marketplace, Alibaba.com, the shares of which almost tripled on its Hong Kong debut.

“There was so much demand in the first two days, it’s reasonable to raise the price range slightly,” said Li Muzhi, a Hong Kong-based analyst at Arete Research Services. – Bloomberg