Ant raises about $34.5 billion to value the company at $312 billion in the largest IPO ever
Alibaba’s shares closed 0.98% lower yesterday, after reaching a new all-time high of $315.46.
A retreat into the $300 range is likely to be seen as an opportunity to buy BABA and target $320
Alibaba (NYSE: BABA) shares hit new record highs when the Alibaba-controlled Ant Group completed the world’s largest IPO ever.
Fundamental analysis: Record IPO amidst strong demand
The Chinese technology giant Ant Group will complete its initial public offering (IPO) to investors one day earlier than previously planned due to strong demand. Thus, the bookbuilding process in Hong Kong will be completed on Wednesday at 17:00 local time, 24 hours earlier than planned.
“It was as if the flood gates had just opened,” people with knowledge of the situation told Nikkei Asia. “The appetite of investors was overwhelming. Orders kept pouring in.”
Ant Group decided to list its shares in both Shanghai and Hong Kong to raise about $34.5 billion and value the company at $312 billion. The Fintech company will list its shares on the stock exchange on November 5.
The IPO had previously received the green light from both the China Securities Regulatory Commission and the Hong Kong Stock Exchange. Alibaba said it would buy 730 million A-shares through its subsidiary Zhejiang Tmall Technology to maintain its 33% stake.
In the first nine months of this year, the number of active Alipay users rose from 711 million in June to 731 million in September. In addition, revenues increased by about 42% year-on-year to 118.19 billion yuan ($17.73 billion).
Technical analysis: New all-time high reached
The Alibaba share price closed 0.98% lower yesterday, despite reaching a new all-time high of $315.46 at the start of the session. Nevertheless, buyers are pushing higher today on positive news related to the Ant IPO.
Alibaba Daily Chart (TradingView)
A deeper retreat into the $300 range will probably be seen as an opportunity to buy Alibaba shares. This area houses the previous all-time high set in August and will now act as a strong support. On the upper side, the next target is $320.
Summary
Ant Group was forced to close its IPO one day earlier due to the strong demand for its shares. The Fintech company, in which Alibaba holds a 33% share, had the largest IPO ever.
