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Alibaba Group Holding Ltd (BABA), If I Can’t Buy My Full Allocation, I Will Go To The Aftermarket: Kevin O’Leary

Kevin O’Leary, Shark Tank investor, expressed his opinion on CNBC regarding Alibaba Group Holding Ltd (NYSE:BABA)’s Initial Public Offering (IPO). An event that got minds spinning, money rolling, palms sweating, and people wondering and as we approach it things get even more intense. However, this commotion will not be transmitted to Alibaba Group Holding Ltd (NYSE:BABA)’s valuation, according to the investor. 1

“This is a large IPO, institutional underwriters want us to be successful they’d like to price it so there is some upside for institutional buyers. None of us like to look like idiots, nothing makes us crazier than taking a full waiting when asked to get it if we can,” said O’Leary.

He doesn’t believe that the price will skyrocket to $100, which was the prediction of several other analysts, but he did admit it as an unlikely possibility. Alibaba Group Holding Ltd (NYSE:BABA)’s management took care that this IPO would not follow the example of Facebook Inc (NASDAQ:FB) as there are also shares that could be bought from its employees. Some consider this as a factor that might compromise the trading and cause the company’s price to drop eventually, no one can say for sure. In general, there should be little concern that things will follow unexpected patterns.

“I fully predict this stock to be well supported institutionally because I want to have some exposure to the Asia’s story. I obviously think this is an index to Chinese growth, whether be 6% or 7%. If I can’t get my full allocation and it looks like I’m not, I’m definitely going to the aftermarket like every other mutual fund company,” added Kevin O’Leary.

Possibly, Kevin’s idea is shared by many other investors that have prepared for this IPO for a long time and they plan to get hold of at least some of Alibaba Group Holding Ltd (NYSE:BABA)’s assets as they are expected to get a lot more expensive with time.

Disclosure: none
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