Alibaba Group Holdings, the Chinese e-commerce giant that is set to make its debut on the New York Stock Exchange Sept. 19 pricing shares at a record $68, is reportedly gearing up to open an office in Washington D.C.
Alibaba's presence in the capital of America has been low key; but according to a report via CNBC, things are about to change. The company is preparing to launch what is being touted as the largest Initial Public Offering (IPO) in the history of mankind.
According to Alibaba's official website, the company has already taken up 7,723-square-foot of space in the Santa Clara Towers at 3945 Freedom Circle, Santa Clara, Calif. - an 11-storey glass and aluminum-façade building.
Although Alibaba officials haven't revealed anything about a new office, CNBC speculates that the move to take up larger space and hire staff to represent it in the foreign country is a strategic step. Alibaba has been working with the U.S. government to sort out some intellectual property and trade secret rules and opening an office in D.C. would give the company an edge.
The Chinese e-commerce giant's NYSE debut is perhaps one of the most-watched and highly anticipated IPO in recent times. Alibaba initially planned on launching the IPO in August, but postponed the dates to September as some investors were unavailable at that time and the listing application also needed U.S. regulatory approval.
Investors have high hopes for Alibaba because the company claims about 80 percent of the e-commerce market share in China. The investors also believe that considering the returns Alibaba could yield, their shares are selling at a discount.
Alibaba first filed for the IPO in May and announced that it hopes on raising $1 billion on its first day at the NYSE. It will list with ticker name BABA. It decided to list on the NYSE after the Hong Kong Stock Exchange declined its request to allow some investors to nominate its board with separate voting rights, reports Economic Times.
