Alibaba plans IPO for after Labor Day
The Chinese e-commerce giant had wanted to have shares trading by mid-August, but that proved too ambitious.
Alibaba Group Holding Ltd. is now planning to launch its initial public offering after the U.S. Labor Day holiday on Sept. 1, according to a person familiar with the company.
The Chinese e-commerce giant has been working on a potentially $20 billion initial public offering for this summer, and it had been planning to launch the deal as soon as the end of this month.
The decision to delay the deal was made because the company couldn't be certain it would complete its pre-IPO work this month, the person familiar with the move said.
The goal had been to complete the IPO and have the shares trading by mid-August, before the IPO market slows.
The company also wanted to launch the deal as soon as possible, to minimize risk that markets would turn, people familiar with its thinking have said.
Though Alibaba has attracted global investor interest, the process of placing more than $20 billion worth of shares, and ensuring that they have a modest first-day pop, isn't an easy one, and many outside events -- such as violence in the Middle East, or a sudden U.S. market plunge -- could easily make the deal far more difficult. The launch work involves people on three continents, including at seven investment banks and five outside law firms.
The company is planning on a robust "roadshow" of face-to-face meetings with investors to pitch the deal, with visits in Asia, North America and Europe, people familiar with its plans have said. The company has wanted to ensure that top decision makers at investment firms would participate in the process and not be absent due to summer vacations, they said.
The company is also still in discussions with the Securities and Exchange Commission over finalizing its IPO paperwork, people familiar with the matter said.
The six banks selling the company's shares are Credit Suisse Group (CS), Deutsche Bank AG, Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS) and Citigroup (C). Rothschild is also advising the company and working with the banks.
What the hell do you know about IPOs...?
What do you really know about China or Chinese internet and search engines...??
And what do you know about Alibaba and Jack Ma....??
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