According to a Bloomberg report, the Alibaba IPO price could be 22% lower than most analyst valuations when the company goes public later this year - but the reason is actually good for investors.
A discount would not signify weakness in the IPO – rather, it would be Alibaba’s attempt to avoid a flop like the one Facebook experienced during its initial public offering, when it ended up losing half its market value in four months as investors worried about slowing growth.