– It would be funny if the fund has subscribed for shares in Alibaba, says senior economist Øystein Børsum in Swedbank Aftenposten.
Børsum says e-commerce company Alibaba is a great company when it is listed will join the benchmarks oil fund trades for.
– The Fund will automatically Alibaba on your shopping list, and then it is wise to be early. They should have kept the 1 percent of the shares that are available, he said.
Guaranteed allocation
To ensure trading in the shares of the stock’s first trading day Friday, the company advisors beforehand made agreements with investors to purchase a certain percentage of shares to be made available under the IPO. The investors will then buy the shares at the offer price, a price the advisors have calculated their way to a likely starting price for the stock.
According to economics professor Øyvind Nordli BI is often a profitable trade as the price shares offered to American IPOs on average is 15 percent below the price they traded at the end of a listing.
Petroleum Fund does not comment on individual investments, but communications manager Thomas Sevang say in general terms that it is most natural for the Fund to subscribe in advance of an IPO when the transaction has a certain size. The one is guaranteed a minimum allocation of shares when the IPO will find it.
According Sevang used oil fund this strategy, eight times a year.
$ 68
Alibaba shares was priced Thursday night at $ 68, which is right at the top of the indicated range.
IPO, according to the Financial Times fetch as much as $ 21.8 billion, or about 137 billion million, which means that the listing is one of the biggest ever.
If an over-allotment option is exercised, the Alibaba recoup as much as 25 billion dollars. In this case we are talking the largest IPO.
Introduction of the New York Stock Exchange may thus become the world’s biggest IPO. The record is Agricultural Bank of China from 2010, with 22 billion dollars.
The market value of Alibaba, which handles more transactions than Amazon, eBay and PayPal together and controls 80 percent of China’s online shopping, rising thus to the contrary 168 billion dollars, over 1.000 billion.
The increased rate reflects strong demand among investors who are eager to gain a foothold in China’s growing internet sector. (© NTB)
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