According to a Friday Bloomberg report that references people with knowledge of the matter, Alibaba (BABA)’s underwriters plan to close their IPO order books early after receiving enough orders at the high end of the $60 – $66 range to sell all the shares in the record-breaking flotation.
The Chinese e-commerce giant is expected to stop taking orders for its initial public offering from U.S. investors by 4 p.m. Sept. 16, while Asian investors have until Sept. 17, a day earlier than previously scheduled to place their trades. All orders for the IPO will be closed by Wednesday afternoon, Bloomberg reported, adding that banks running the sale have not yet decided if they will increase the price range or the number of shares they plan to offer on Thursday, Sept. 18.
Alibaba had received enough orders for the offering to cover the entire deal within 48 hours of its launch, people familiar with the offering told Reuters on Wednesday.
The IPO is expected to raise as much as $21.1 billion at the top end of the projected price range, surpassing Facebook (FB)’s $16 billion listing in FY 2012 as the largest-ever tech IPO. Furthermore, the Chinese e-commerce giant could set a new record for the world’s biggest IPO if it exercises the overallotment option on its deal. The greenshoe choice would allow Alibaba to raise as much as $24.3 billion, overtaking Agricultural Bank of China Ltd’s $22.1 billion listing in FY2010.