On Wed, Jan 16, 2013 at 4:47 PM, EDMOND LOCOCO (BLOOMBERG/ NEWSROOM:) <elococo@bloomberg.net>wrote:

     Good afternoon.
     Would you be able to comment on the IPO news breaking on Alibaba today?
     It looks like the IPO may raise $3 billion to $4 billion in Hong Kong
this year, see our report attached.
     How does that size compare to your expectations, bigger or smaller?
     Do you think the IPO will be well received? Why?

     Thanks for your assistance.

Dundas Deng wrote:

Hi Edmond,
Although I didn't expect Alibaba Group to launch its IPO so soon, but it may be somewhat related to Ma Yun's stepping down, the demands of the new shareholders from its last financing activity (incl. CIC, CDB, Temasek, DST and etc.) and to prepare in advance before the deadline of 2015. Ma Yun don't usually play the game in a way that others could be able to guess his next move, so the news could be true.
The size of the IPO matched Ma Yun's previous expectation and at a valuation level which is acceptable to HK investors, I would guess it's around the middle range of 3.5 bn to accommodate to different parties of interest.
I think the IPO will be well-received. As in Alibaba.com's previous IPO, Ma Yun tend to set a price that gives some profit margin to IPO investors to facilitate this financing event to gain some PR benefits at the same time. Also this time, the group's assets will certainly include more assets that previous investors could not have a hold of, such as some assets from the B2C BU and etc.