Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Alibaba Group Holding Ltd (BABA) Public Offering Can be Played Indirectly Through These Methods

Alibaba Group Holding Ltd (NYSE:BABA) will soon debut on the New York Stock Exchange in grand, potentially IPO record-breaking fashion, and that has many investors wondering how they can get involved in the IPO in some manner, even if not directly. As Mia Saini reported on Bloomberg today, there are several different options available. 1

“So if you’re lucky enough to tap into the secondary markets, that’s a great avenue. I spoke to Brendan Ahern, he’s the managing director at Krane Fund Advisors, and he says some other ways include tapping the private wealth arm of some of the big underwriters that are doing the deal for Alibaba. Number two, he said actively managed mutual funds was the way to go, and ETF’s,” Saini said.

Otherwise, the options for getting a little piece of Alibaba Group Holding Ltd (NYSE:BABA) are limited. The company will not have any presence on some of the major indexes  like the NASDAQ and S&P 500 due to various rules and restrictions. In the latter’s case, which also applies to the MSCI and FTSE 100 among other indexes, foreign companies like Alibaba Group Holding Ltd (NYSE:BABA) are not included in their benchmarks.

Another way would be to get involved in companies with major slices of Alibaba Group Holding Ltd (NYSE:BABA) ownership, including Yahoo! Inc. (NASDAQ:YHOO) and Japan’s Softbank Corp (USA) (OTCMKTS:SFTBF). However as Saini mentioned, the play on those companies was more noteworthy leading up to the IPO rather than following it, and they probably won’t provide the pop that could be found elsewhere.

Both Yahoo! Inc. (NASDAQ:YHOO) and Softbank Corp (USA) (OTCMKTS:SFTBF) have made major gains through the past month leading up to the Alibaba Group Holding Ltd (NYSE:BABA) IPO. Since August 12, both stocks are up about 19%, which in the case of Softbank Corp (USA) (OTCMKTS:SFTBF), has made its founder and CEO Masayoshi Son the richest person in Japan thanks to the stock’s surge, according to Bloomberg.

Alibaba Group Holding Ltd (NYSE:BABA) is expected to price its IPO tomorrow, with shares trading on the NYSE beginning Friday.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.