Start the conversation
Chinese e-commerce firm Alibaba Group Inc. (NYSE: BABA) made an amendment to its IPO filing last night (Thursday), announcing that it will be listing on the New York Stock Exchange under the ticker "BABA."
Rumors circulated last month that Alibaba would choose "BABA" as its ticker, because "ba" means "eight" in Chinese, which is considered a lucky number in Chinese culture.
When the Alibaba IPO comes to the NYSE, BABA will be the third-largest tech company on the NYSE behind International Business Machines Corp. (NYSE: IBM) and Oracle Corp. (NYSE: ORCL). That's based on a Bloomberg survey of analysts from April that estimates BABA's value at $168 billion. Some more bullish estimates place Alibaba's value well over $200 billion.
By picking the NYSE, BABA dealt a major blow to the Nasdaq, which has historically attracted tech companies. That trend seems to be fading however, as 22 of the 37 tech and Internet companies that held U.S. IPOs in 2013 chose the NYSE. There were 10 tech/Internet IPOs in 2014's Q1, and seven of them listed on the NYSE.
"The momentum shifts back and forth between the two exchanges as far as IPO wins, and now it's shifted back to the NYSE," Sandler O'Neill & Partners LP analyst Richard Repetto told Bloomberg.
Now that BABA stock has chosen an exchange, here's the rest of the information you need to know ahead of the Alibaba IPO...
The Alibaba IPO date could happen as soon as August: While no official announcement has been made, Aug. 8, 2014 has been pegged as a likely date for the Alibaba IPO. Not only does the first week in August fit into a likely timeline, the number eight is considered lucky in Chinese culture. Here's why that date makes sense for the Alibaba IPO.
The Alibaba IPO price could be a record: Many analysts have placed the Alibaba IPO price above $20 billion, which would trump the $19.65 billion Visa Inc. (NYSE: V) raised in its 2008 IPO. But the estimates don't stop there. Morningstar recently projected $26 billion for the Alibaba IPO, which would be the largest initial public offering in world history.
The Alibaba IPO frenzy is boosting stocks: Money Morning's Defense and Tech Specialist Michael Robinson told readers earlier this year about a stock that was set to cash in on the Alibaba IPO frenzy. And since Alibaba filed its prospectus, this stock is up 18%. See how Alibaba is lifting this investment as its IPO date approaches...
And the best news about this looming IPO is that it has created a major profit opportunity that most investors haven't yet noticed... It's happening now, months before Alibaba hits the market...
In fact, this could be your one and only chance to make the kind of gains normally reserved for the high-net-worth investors and bankers. You can learn more about this Alibaba profit play here.
Do you plan on investing in Alibaba following its 2014 IPO? Join the conversation on Twitter @moneymorning using #Alibaba.
Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter
Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…