The IPO target price revealed by Chinese e-commerce company Alibaba Group Ltd. puts a firmer value on stock held by its biggest shareholder: Sprint Corp. owner SoftBank Corp.
In a filing with the SEC, Alibaba said it will price its shares at between $60 and $66 a share. SoftBank is the largest shareholder in Alibaba, and will remain so after the IPO. After the offering, the Japanese company will own about 32.4 percent of Alibaba’s stock.
If Alibaba’s stock sells for the midpoint of its target price, or $63 a share, that would put the value of SoftBank’s holdings at about $50.22 billion. For perspective, SoftBank invested about $21.6 billion when it bought a controlling interest in Overland Park, Kan.-based Sprint in July 2013.
SoftBank CEO — and Sprint Chairman — Masayoshi Son is on the board of directors of Alibaba. Led by CEO Jack Ma, Alibaba is the leading e-commerce company in China,