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Alibaba reportedly starting roadshow for IPO on Sept 8

(Bloomberg) Updated: 2014-09-02 07:20

Alibaba reportedly starting roadshow for IPO on Sept 8

A bird's-eye view of the Hangzhou-based Alibaba Group Holding Ltd compound. The company has been in discussions with the US Securities and Exchange Commission as it seeks regulatory approval for its IPO. It originally had targeted an early August trading debut. LIANG ZHEN/CHINA DAILY

Alibaba Group Holding Ltd is postponing the start of investor meetings for its initial public offering by about a week to answer questions from the US Securities and Exchange Commission, according to a person with knowledge of the matter.

The Chinese e-commerce giant, which was weighing a plan to market its IPO early this week, now expects the meetings to begin in the week of Sept 8, with tentative pricing on Sept 18 and trading to start the following day, said the person, who asked not to be identified because the information was private.

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Alibaba, based in Hangzhou, in Zhejiang province, has been in discussions with the SEC as it seeks regulatory approval of its prospectus. The company has held off rushing the deal after originally targeting an early August trading debut, a person familiar with the matter said in July.

"There shouldn't be any obstacles to proceeding with the IPO," said Li Muzhi, a Hong Kong-based analyst at Arete Research Service LLP. "This just gives them a bit more time."

Florence Shih, a spokeswoman for Alibaba in Hong Kong, declined to comment.

The investor meetings, known as a roadshow, will give Alibaba, founded by billionaire Jack Ma, the opportunity to answer questions from the world's biggest fund managers and build demand for its shares, which are expected to raise as much as $20 billion.

At that level, Alibaba's sale would edge past Visa Inc's 19.65 billion IPO in 2008 to become the biggest in US history, data compiled by Bloomberg show.

The Chinese e-commerce operator, which plans to sell shares on the New York Stock Exchange, may set its IPO value at $154 billion, or 22 percent below analyst valuations, in a move that could avoid repeating Facebook Inc's listing flop, according to the average estimate of five analysts surveyed by Bloomberg last month. The poll respondents gave Alibaba an average post-listing valuation of $198 billion.

Ma, the 49-year-old founder and chairman whose assets include a 7.3 percent economic interest in Alibaba, has emerged as China's richest person, with a net worth of $21.8 billion, the Bloomberg Billionaires Index shows.

One key issue for regulators, that of the separation of Alipay, Alibaba's finance affiliate, was resolved after the company agreed to a new deal with the payment processor earlier this month, Arete Research said.

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