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Alibaba Bears Shorting 8.9 Million Shares After Biggest Ever IPO 2014-09-25 19:43:48.835 GMT
By Boris Korby Sept. 25 (Bloomberg) -- About 2.4% of listed shares being sold short, according to data compiled by Bloomberg and Markit, a London-based provider of financial information. * Alibaba sold 368.1 million shares in IPO * Alibaba surged 38% to $93.89 on Sept. 19 in 1st day of trading after pricing shares at $68. Stock fell to $88.98 at 3.08 p.m. in NY today * Alibaba is trading at about 39 times current-year profit, compared with a multiple of 16 for the S&P 500 * “Out of the gate we see high demand to borrow shares of BABA,” Andrew Laird, a New York-based product specialist at Markit, said in an e-mail. “This is a relatively small amount compared to the total shares outstanding but still significant considering the limited supply that is available to borrow following an IPO.” * NOTE: Shorting Alibaba Costs 7% to Borrow Shares Following Biggest IPO
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To contact the reporter on this story: Boris Korby in New York at +1-212-617-1073 or bkorby1@bloomberg.net To contact the editors responsible for this story: Nikolaj Gammeltoft at +1-212-617-1061 or ngammeltoft@bloomberg.net Marie-France Han