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Alibaba ipo


Forrest Gump 9

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So, can someone explain why it was estimated to be $68, but looks like it opened at $94.50?

 

$68 is what the shares were sold for to the institutions and qualified investors who were actually buying the IPO. Once you are able to buy them in your Scottrade or whatever account you are purchasing them on the secondary market.

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$68 is what the shares were sold for to the institutions and qualified investors who were actually buying the IPO. Once you are able to buy them in your Scottrade or whatever account you are purchasing them on the secondary market.

 

That seriously explains so much, thanks.

 

So who qualifies to buy it at the IPO? How do you qualify to be a "qualified investor"?

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$68 is what the shares were sold for to the institutions and qualified investors who were actually buying the IPO. Once you are able to buy them in your Scottrade or whatever account you are purchasing them on the secondary market.

 

That's what I thought, it just boggles my mind that this means those institutions made 32%+ today on the shares they wanted to and could sell. If somehow they were able and wanted to sell all of their shares, that means they made an accumulative ~ $6B+ today. I bet they added 32% of value to that stock by buying and reselling it. :dumb:

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People should realize that if you buy Alibaba stock, you're buying shares of their Cayman Islands holding entity.

 

If something goes sour (which, since it's China it likely will), you'll have to sue the Cayman Islands entity, win, and then turn around and sue Alibaba in China.

 

Good luck with that. :lol:

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That seriously explains so much, thanks.

 

So who qualifies to buy it at the IPO? How do you qualify to be a "qualified investor"?

 

You really don't wanna ask that question. However I think you know why I stay out of IPO's beyond shorting the reversals.

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