It is expected Alibaba will sell 320 million shares with the ability to add another 48 million shares if demand is robust. Assuming 368 million shares are sold at the higher end of the $60 to $66 range, Alibaba’s opening market value is expected to be about $24 billion.
Ahern also points out that Japan’s Softbank owns 34% of Alibaba, Yahoo (NasdaqGS: YHOO) owns another 23% while founder Jack Ma controls 9%. According to an updated filing with the Securities and Exchange Commission, Ma will sell 10% of his stake in the IPO while Yahoo is expected to trim its Alibaba holdings by about 20%.
While mostly speculative and far from an exact science at this point, it is possible to make educated guesses regarding Alibaba’s presence in KWEB and KYFP, both of which can add the stock after its eleventh trading day.
Assuming shares of Alibaba double over the first 11 days, it would surpass JD.com (NasdaqGS: JD) as KWEB’s third-largest holding, based on JD’s $34.9 billion market cap at Friday’s close. A market cap in the area of $48 billion or $50 billion would also be enough to make Alibaba KFYP’s third-largest holding. Baidu (NasdaqGS: BIDU) and Tencent Holdings (OTC: TCEHY) are the two largest holdings in both KFYP and KWEB. [Alibaba Will Find a Home in This ETF]
KraneShares CSI China Internet Fund
