London, United Kingdom, September 04, 2014 --(PR.com
)-- FinancialSpreads, the UK spread trading and CFD trading company, has seen its Alibaba IPO grey market spike 10% higher.
Since April, FinancialSpreads
has been offering clients a grey market which is based on Alibaba's market capitalisation at the end of its first day of trading on the New York Stock Exchange.
The grey market on the Chinese ecommerce giant originally opened at 180 - 190 points, where each point is $1bn.
Therefore FinancialSpreads was estimating that the Chinese company would IPO at around $180 - $190bn, making it one of the biggest ever IPOs. At $180bn that would be far larger than the Facebook ($105bn) or Twitter ($25bn) IPOs.
There is currently a delay with the IPO because the SEC has reportedly asked Alibaba for more details on the structure of the company. According to Adam Jepsen, spokesman for FinancialSpreads.com, any clarification might help raise the value further and be the reason behind the recent 10% jump.
"Since April our grey market has traded around the $200bn mark, but over the last week it's jumped up 10% to $220bn. That's over twice the size of the Facebook IPO.
"The IPO was set for 1 September but that has now been pushed back. However, we understand that the delay is due to the SEC asking for a number of clarifications over the complex management and ownership of the company - this is not helped by Chinese restrictions on foreign ownership.
"However, if the SEC can help clear up some of the uncertainty then that will help calm investor nerves and potentially boost the astronomical IPO even further."
Trading Alibaba Shares After the IPO
Once Alibaba has listed on the US stock market, FinancialSpreads will then run normal US equities markets on the Chinese firm, i.e. spread trading and CFD markets which are based on the Alibaba share price rather than the market capitalisation.
Spread trading and CFD trading carry a high level of risk to your capital and can result in losses that exceed your initial deposit. They may not be suitable for everyone, so please ensure that you fully understand the risks involved.
As well as running over 3,000 spread trading and CFD markets, FinancialSpreads.com also offers a series of 'special' markets.
In 2014 these specials have included IPO grey markets on Alibaba, TSB Banking Group and Zoopla. Each month the firm also creates a market on the key US Nonfarm Payrolls employment figure.
FinancialSpreads is a trading name of London Capital Group Ltd (LCG) which is authorised and regulated by the Financial Conduct Authority. LCG is a company registered in England.