In their secondary listing, Alibaba had raised an amount of up to $13 billion and proved that the demand for its shares is hot despite the economic concerns being there in the region and also there being a political unrest in that region
The price of the company’s 500 million shares at a price equivalent to about $180 per every listed share in United States is one of the greatest share sales in this year all through the year. This represents a 3% discount in the closing price of Alibaba on Tuesday in New York an amount which is shy of the ceiling which the company had indicated in the previous week.
By pricing their offer a little cheaper, Alibaba had made sure that there had been enough interest, it had stopped collecting their orders as many as four hours earlier due to a strong demand among investors as per reports.
Analysts have said that the overall demand for the shares was tremendous and while there had been concerns which weighed in on the economy of China particularly in the wake of the US/China trade dispute. There is a continuous belief that the internet in China offers a few of the biggest open ended opportunities for growth in the next few years.
The stocks of Alibaba have gained by 33% in the year which has been driven by the consumer sector in the economy of China that has been resilient. For the end of the quarter that ended in September, the company had reported a growth of revenue of 40% from the period a year ago and earnings per share. Both of these numbers were above the expectations of the Wall Street.