Therefore Financial Spreads was estimating that the Chinese company would IPO at around $180 - $190bn, making it one of the biggest ever IPOs. At $180bn that would be far larger than the Facebook ($105bn) or Twitter ($25bn) IPOs.
There is currently a delay with the IPO because the SEC has reportedly asked Alibaba for more details on the structure of the company. According to Adam Jepsen, spokesman for FinancialSpreads, any clarification might help raise the value further and be the reason behind the recent 5% jump.
"Since April our grey market has traded around the $200bn mark, but over the last week it's jumped up 5% to $210bn. That's twice the size of the Facebook IPO.
"The IPO was set for 1 September but that has now been pushed back. However, we understand that the delay is due to the SEC asking for a number of clarifications over the complex management and ownership of the company - this is not helped by Chinese restrictions on foreign ownership.
"However, if the SEC can help clear up some of the uncertainty then that will help calm investor nerves and potentially boost the astronomical IPO even further."
Trading the Alibaba Shares After the IPO
Once Alibaba has listed on the US stock market
, FinancialSpreads will then run normal US equities markets on the Chinese firm, i.e. spread betting and CFD markets which are based on the Alibaba share price rather than the market capitalisation.
Spread betting and CFD trading
carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved.
As well as running over 3,000 spread betting and CFD markets, FinancialSpreads.com also offers a series of 'special' markets.
In 2014 these specials have included IPO grey markets on Alibaba, TSB Banking Group and Zoopla. Each month the firm also creates a market on the key US Nonfarm Payrolls employment figure.
Financial Spreads is a trading name of London Capital Group Ltd (LCG) which is authorised and regulated by the Financial Conduct Authority. LCG is a company registered in England and Wales under registered number: 3218125. Registered address, 2nd Floor, 6 Devonshire Square, London, EC2M 4AB.
Original press release: June 2014
- as of 14 Sept 2015, Financial Spreads is a trading name of Clear Investor Ltd. which is an appointed representative of FINSA Europe Ltd., company no: 07073413. FINSA Europe Ltd. is authorised and regulated by the Financial Conduct Authority, registered number 525164. Registered Address: 9th Floor, 30 Crown Place, London, EC2A 4ES, UK.
The information and comments provided herein under no circumstances are to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice. The information provided is believed to be accurate at the date the information is produced.
By Adam Jepsen, 4 September 2014