China’s biggest e-commerce company will stop taking orders from retail investors for its $13 billion share sale later on Tuesday after seeing stronger-than-expected demand, a person familiar with the matter told CNN Business.
The Hong Kong listing was “multiple times subscribed,” the person said, adding that the final price retail investors will pay for the Hong Kong listing will be based on Alibaba’s closing price Tuesday in New York, where its shares have been traded since 2014.
The company founded by billionaire entrepreneur Jack Ma raised $25 billion in that initial public offering on the New York Stock Exchange that shattered records as the largest IPO in history.
At the current price of Alibaba’s New York shares, the Hong Kong sale would fall short of the share price of 188 Hong Kong dollars ($24) the company had set as a ceiling.
But it would still raise nearly $13 billion if the company’s bankers exercise an option to purchase some additional shares.
Alibaba declined to comment.
Alibaba is scheduled to list shares on November 26, according to a term sheet.