Alibaba Group Holding Limited (NYSE:BABA) to close books early in $13.4 billion Hong Kong listing after strong demand

Alibaba Group Holding Limited (NYSE:BABA) to close books early in $13.4 billion Hong Kong listing after strong demand

Alibaba Group Holding Limited (NYSE:BABA) to close books early in $13.4 billion Hong Kong listing after strong demand

Alibaba will stop taking orders from prospective institutional investors for its $13.4 billion secondary listing in Hong Kong earlier than expected after attracting strong demand, two people with direct knowledge of the matter said.

Order books will now close on Tuesday at 12 p.m. in New York (1700 GMT), half a day earlier than initially planned by the Chinese e-commerce giant and its investment banking advisers.

The decision was made by the company on Monday, the sources said. The final price that institutional investors will pay will still be set by Wednesday evening Hong Kong time, based on Tuesday’s closing price in New York, they added.

The sources, who could not be named because the information has not yet been made public, also told Reuters that the order books are covered ‘multiple times’.

An Alibaba spokeswoman declined to comment on the company’s decision to close the books early.

The listing is part of a year-end equity market rush which also includes the IPO of Saudi oil giant Aramco.

The price range set by Aramco on Sunday values the company at up to $1.7 trillion, below the $2 trillion sought by Saudi Arabia’s crown prince.

But the valuation still keeps it in the running to become the world’s largest IPO, potentially topping Alibaba’s record $25 billion New York stock market debut in 2014 if there is enough demand to use an over-allotment option.

Alibaba’s stock is due to start trading on the Hong Kong Stock Exchange on November 26, according to a prospectus lodged with New York regulators, with a listing ceremony scheduled for that day.

The stockmarket debut in Hong Kong comes as the Chinese-controlled city battles worsening violence on the streets in anti-government protests which have been ongoing for nearly six months.

More than 4000 people have been arrested during that time and China warned on Monday that the world should not under-estimate its will to protect Hong Kong from ‘criminals conducting violence against civilians’.

Technical Indicators

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 176.11.

The projected upper bound is: 194.48.

The projected lower bound is: 175.01.

The projected closing price is: 184.75.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 48.0293. This is not an overbought or oversold reading. The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 59.27. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 73 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 57. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 0 period(s) ago.

Rex Takasugi – TD Profile

ALIBABA GRP ADR closed down -0.880 at 184.610. Volume was 23% below average (neutral) and Bollinger Bands were 4% wider than normal.

Open     High      Low     Close     Volume___
186.910 186.910 184.180 184.610 2,297,919
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 184.90 175.82 173.78
Volatility: 21 36 36
Volume: 3,691,370 2,932,746 3,228,198

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

ALIBABA GRP ADR is currently 6.2% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into BABA.N (mildly bullish). Our trend forecasting oscillators are currently bullish on BABA.N and have had this outlook for the last 14 periods.

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