Alibaba has raised the price range for its initial public offering.
The Chinese e-commerce giant has raised its IPO pricing range from to $US66-$68 from $US60-$66, according to an amended filing with the SEC.
The IPO price range is what investors who buy shares before the stock begins trading on an exchange — usually large institutional investors like mutual funds or hedge funds — are expected to pay for the stock. Alibaba shares may still open for trade on the NYSE at a price higher than where the IPO prices.
At the midpoint of the new range, the company would raise about $US21.4 billion, with the value of the company set at a bit more than $US165 billion.
At the midpoint of the new range, the 121 million shares Yahoo is set to sell would be worth more about $US8.1 billion. Following the offering, Yahoo is set to still hold a 16.3% stake in Alibaba; Yahoo currently holds a 22.6% stake in the company.
According to Bloomberg, Alibaba is expected to price its IPO on Thursday night trading in New York set to being Friday morning.
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