The WSJ reports,"Alibaba Group Holding Ltd., responding to concerns from investors that it has been too tight-lipped, plans to give out more details about its Internet empire as it readies its potential $20 billion initial public offering, said people familiar with the matter.
The Chinese e-commerce company, which plans to go public in the next few months, is preparing a new regulatory filing that will give metrics on some of its individual businesses, the people said. It will also disclose the names of the 28 partners with the power to nominate the company's board, the people said. The new filing could arrive as soon as Friday, but next week is more likely".
"Alibaba and its banks are responding to some complaints from investors that the company's initial IPO filing was too vague and didn't give them enough information to size up the company.
While companies are typically eager to keep investors happy, the stakes in this case are higher because the company's IPO could be the biggest ever. The sheer number of shares up for sale means bankers need to ensure there is deep enough demand from the largest investors.
Bankers have received some general feedback from investors, the people said, though the formal pricing and sales process isn't expected to begin until later in the summer.
Some big investment firms are expected to consider buying as much as $1 billion worth of stock, a slug that would make Alibaba one of the biggest holdings at some firms.
Alibaba's bankers hope to have demand from big fund firms for at least four or five times the amount the company is selling, people familiar with their thinking said, to help ensure there is ample demand once the company's stock trades publicly to buoy the price. In a typical IPO, bankers might seek orders from the biggest investors for just two or three times as much as they are selling.
That means if Alibaba wants to raise $20 billion, the underwriters will need to identify and generate demand for potentially more than $100 billion worth of shares to meet that goal.
Companies often revise IPO documents after the initial filing. Alibaba is in the process of fielding questions from the Securities and Exchange Commission, which must approve the document before shares can be priced and sold.
Before that approval comes, and before the company sets an expected price range on the stock, the company cannot speak to investors. Its bankers, however, can talk to investors generally about the company, though they cannot solicit from investors whether they would invest, or at what price they would buy in, according to U.S. rules.
The listing, in New York, is currently being planned for the first half of August, though the timing isn't set in stone, the people said. The company expects to shop the deal to investors globally, with large meetings in hubs possibly including Hong Kong, New York and London, they added".
