Who's Cashing In on Alibaba's IPOby
Alibaba’s initial public offering will make many people a lot of money, from the banks underwriting the deal (and at least one that isn’t) to thousands of current and former employees of the company, to other tech companies riding the wave Alibaba is sending through the markets.
The company lists four individuals or entities that are actually selling stocks as part of the IPO, each of whom is moving hundreds of millions of dollars worth of stock. Its largest shareholder, Japanese telecommunications giant SoftBank, isn’t selling any shares as part of the IPO. Here’s a breakdown of who’s selling:
|Stakeholder||Percent Held before IPO||Value of Stock Sold in IPO||Percent held After IPO|
|Jack Ma||8.8%||$867 million||7.8%|
|Joseph Tsai||3.6%||$289 million||3.2%|
|Fengmao Investment Corp||2.8%||$971 million||2.1%|
(Source: Company Filings)
In addition to the cash these shareholders bring in from these sales, each one stands to be much richer on paper by the end of the day, as the remaining shares they have gain value. The stock began trading at $92.70, 36 percent above the IPO price of $68 a share.