NEW YORK: Alibaba Group Holding Ltd’s new long-term debt rose in initial trading as the Internet company’s US$8 billion (RM27 billion) debut gave traders, who were allocated bonds in the sale, the opportunity to turn quick profits.
The company’s US$2.25 billion of 3.6 per cent bonds due in November 2024 years rose 0.61 cent from its issue price to 100.4 cents on the dollar in trading after the sale on Thursday, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
“There’s big global demand for this deal,” said Matthew Duch, money manager at Bethesda, Maryland-based Calvert Investments Inc., whose firm has orders to buy the new offering.
Debt due in 10 or more years rose more in secondary trading than shorter maturities from the six-part sale.
The company got at least US$57 billion of orders from investors, more than seven times the securities offered for sale.
Founded by its chairman Jack Ma, Alibaba raised a record US$25 billion in its initial public offering in September.
“Given the strength of the IPO, this deal was expected to follow through as well,” Duch said, referring to yesterday’s note sale.
The company’s main online marketplaces include Taobao, which links individual buyers and sellers, and Tmall.com, which connects retailers and consumers. Bloomberg