Demand for shares are so overwhelming that Alibaba plans to boost the size of its IPO, say sources, as the company takes its roadshow to Hong Kong. Fred Katayama reports.
It's looking like open sesame for Alibaba as it kicks off its roadshow in Hong Kong. Sources say demand for shares of the company founded by Jack Ma are so "overwhelming" that the Chinese e-commerce company plans to boost the size of its IPO. It could set a record as the world's largest IPO if underwriters opt to sell more shares to meet that demand, raising roughly $24 billion. A source says Alibaba will likely amend its IPO today. And Bloomberg says it could hike its current price range of $60 to $66 per share to above $70. The company has experienced the mighty 'mo' since launching its IPO last week in New York. Within two days, enough investors had expressed interest for Alibaba to sell all of its shares. So the company now plans to stop taking orders early, closing its order book Tuesday in the U.S. and Wednesday in Asia. Look out, Amazon.com and eBay. The operator of the Taobao and Tmall marketplaces boasts transactions larger than those American companies combined. And Ma has them in his sight. SOUNDBITE; JACK MA, EXECUTIVE CHAIRMAN AND FOUNDER, ALIBABA (PART MANDARIN WITH ENGLISH TRANSLATION) SAYING: "After our IPO in the United States, we will vigorously expand in Europe and the United States, meanwhile, we will not give up on Asia. After all we are not a company from China, we are an Internet company (that) happens to be from China." Earlier this summer, his company established a beachhead in the U.S., launching the online shop, 11main.com.