Alibaba Group told investors it might set a Hong Kong IPO price at around HK$176 a share,media reported, citing people familiar with the matter. That’s 2.9 percent below Alibaba’s latest closing price in New York. People familiar with the matter, who spoke on condition of anonymity because the news has not been made public, said Alibaba had stopped accepting institutional investors.
Fund managers can adjust the subscription price by 8p ET on Tuesday, according to people familiar with the matter. The final offer price has not yet been formally determined and is likely to change.
The Chinese e-commerce giant is poised to raise more than $11bn through the IPO, one of the world’s largest this year. A representative for Alibaba declined to comment.
Credit Suisse and CICC are co-sponsors of the IPO. Citi, JPMorgan Chase and Morgan Stanley were also involved in underwriting.
Alibaba’s Hong Kong IPO attracted HK$13.6 billion in margin loans, the Hong Kong Economic Daily reported, citing brokeragedata as of Tuesday. The public subscription portion of Alibaba Group’s Hong Kong IPO has been oversubscribed by 4.6 times.