Big Mutual Funds Eyeing Alibaba (BABA) IPO

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Big Mutual Funds Eyeing Alibaba (BABA) IPO

Alibaba.com Logo
All eyes are set on Alibaba Group Holdings Ltd. (BABA) this morning as the company gears up to make its debut on the New York Stock Exchange.

Inside the Alibaba IPO

Why is Alibaba stealing the headlines? If all goes as planned, Alibaba is expected to be the biggest U.S. initial public offering. The company plans to raise over $20 billion and sell an estimated 320 million shares; many are expecting for the company to start trading at least at $68 a share.

Why should investors care? Aside from the size of its IPO, Alibaba is a juggernaut in the online marketplace space. The company boasted online sales of $248 billion last year, which is more than eBay.com (EBAY) and Amazon.com (AMZN) combined. In 2013, it is stated that the company generated $8.5 billion in revenues.

All in all, the IPO is valued at approximately $167 billion, which would make it among the largest in history.

What BABA Means for Mutual Fund Investors

For mutual fund investors, Alibaba’s debut is exciting as many of the biggest companies in the space have expressed interest and buying up shares once they are available.

Fund industry bellwethers including Fidelity, BlackRock, and T. Rowe Price have already asked for some large allocations, and are expected to be among the company’s biggest new shareholders. Smaller firms like Wellington Management Co. and Putnam Investments LLC have also requested shares in the China-based online marketplace behemoth.

Although exact amounts have not been officially disclosed yet, some sources suggest that each of the firms has requested more than $1 billion worth of shares; this showcases the strong interest among institutional investors surrounding this highly-anticipated IPO.

The Bottom Line

There’s no telling how Alibaba’s IPO will play out. What’s certain, however, is that there is strong interest among retail and institutional investors alike, making this a must-watch debut on Wall Street. Furthermore, some mutual fund investors will soon have exposure to the online juggernaut, making it all the more exciting to see how its IPO goes.

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Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

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Find out why $30 trillon is invested in mutual funds.


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Alibaba.com Logo

Big Mutual Funds Eyeing Alibaba (BABA) IPO

All eyes are set on Alibaba Group Holdings Ltd. (BABA) this morning as the company gears up to make its debut on the New York Stock Exchange.

Inside the Alibaba IPO

Why is Alibaba stealing the headlines? If all goes as planned, Alibaba is expected to be the biggest U.S. initial public offering. The company plans to raise over $20 billion and sell an estimated 320 million shares; many are expecting for the company to start trading at least at $68 a share.

Why should investors care? Aside from the size of its IPO, Alibaba is a juggernaut in the online marketplace space. The company boasted online sales of $248 billion last year, which is more than eBay.com (EBAY) and Amazon.com (AMZN) combined. In 2013, it is stated that the company generated $8.5 billion in revenues.

All in all, the IPO is valued at approximately $167 billion, which would make it among the largest in history.

What BABA Means for Mutual Fund Investors

For mutual fund investors, Alibaba’s debut is exciting as many of the biggest companies in the space have expressed interest and buying up shares once they are available.

Fund industry bellwethers including Fidelity, BlackRock, and T. Rowe Price have already asked for some large allocations, and are expected to be among the company’s biggest new shareholders. Smaller firms like Wellington Management Co. and Putnam Investments LLC have also requested shares in the China-based online marketplace behemoth.

Although exact amounts have not been officially disclosed yet, some sources suggest that each of the firms has requested more than $1 billion worth of shares; this showcases the strong interest among institutional investors surrounding this highly-anticipated IPO.

The Bottom Line

There’s no telling how Alibaba’s IPO will play out. What’s certain, however, is that there is strong interest among retail and institutional investors alike, making this a must-watch debut on Wall Street. Furthermore, some mutual fund investors will soon have exposure to the online juggernaut, making it all the more exciting to see how its IPO goes.

Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next