Alibaba Just Cranked Up Its IPO Price Range To $US66-$68

AlibabaChance Chan/ReutersAn employee is seen behind a glass wall with the logo of Alibaba at the company’s headquarters on the outskirts of Hangzhou, Zhejiang province, April 23, 2014.

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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