Alibaba Group has already received enough orders for its record-breaking initial public offering to cover the entire deal, just two days into its roadshow, Reuters reported on Wednesday (Sept. 10).
Jack Ma, the Chinese e-commerce giant’s co-founder and executive chairman, had only spoken with investors in New York and Boston by the end of Tuesday, but that has been enough to sell out the offering, according to unnamed sources familiar with the IPO process.
It’s not clear whether most investor demand was at the high or low end of the $60-to-$66-per-share range for the IPO, the sources said. At $66, the Alibaba IPO would raise more than $21 billion and be the largest-ever technology IPO. The IPO is expected to name its price on Thursday, Sept. 18.
Underwriters also have the option to sell additional shares to meet demand, putting the total take as high as $24.3 billion, making it the biggest IPO of any kind.
Alibaba has reportedly kept tight control over the IPO instead of leaving it in the hands of the group of banks managing the offering. That has led to a complicated arrangement and left some bankers complaining it has created additional layers of work, Reuters reported.