It seems that online retail giants Alibaba are taking the same principle they have towards products into their IPO strategy.
The record breaking initial public offering of Alibaba is set for tomorrow – Thursday September 17 - and people are already saying that the shares are too cheap to miss. In fact, Bloomberg reports that Thornburg Investment Management Inc. will buy shares at a discount, Clough Capital Partners LP are convinced of the company’s growth potential, and Krane Fund Advisors LLC has created an exchange-traded fund to buy Alibaba shares. Bloomberg also reports that Eric Brock, a portfolio manager at Clough Capital, which oversees more than $4.5 billion to say, “I’d be comfortable with the shares pricing even a bit above the higher targeted range.”
So will they pile them high and sell them cheap? The Hangzhou-based company have already changed the maximum price range of $66 to be the minimum. And with net income predicted to rise by 50% in the next year, the market value of the IPO tomorrow of up to $167.6 billion, is looking not only achievable but easily within reach. For Alibaba and the share buyers, this is win-win situation as the largest IPO in US history hits the markets.
“Image Source: Alibabagroup.com”
Trading in CFDs involves significant risk to your invested capital
WARNING FOR HIGH RISK INVESTMENTS:
Trading in CFDs is highly speculative; it carries a high risk and is not suitable for all investors. There is a possibility that you may lose part or all of your return on capital and you should therefore not speculate with a capital that you cannot afford to lose. CFDs or any other underlying instruments (Company’s Assets) confer a high degree of risk and can lead to a loss of your invested capital. Please click here to read the full warning on risks incurred.
STOCK.com is a trading name of Leadcapital Markets Ltd, an investment company authorized and regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under license number 227/14. Leadcapital Markets Ltd is located at Treppides Tower, 9 Kafkasou Street, Aglantzia,5th Floor, CY 2112, Nicosia, Cyprus