Survey Sees No Quick Upside For Alibaba Group Holding Ltd.

Alibaba Group Holding Ltd. shares are unlikely to significantly gain in value during the first month of trading, according to an investor opinion survey released Tuesday. Alibaba is expected to price its offering Thursday at up to $68 a share while the issue will launch Friday on the New York Stock Exchange under the symbol BABA. Just 33 percent of investors think Alibaba shares will gain 10 percent or more during that period, according to a survey of participants in Alibaba's recent road show in support of its upcoming initial public offering. About 22 percent expect the shares to fall during the first month of trading. The brokerage services company ConvergEx Group performed the survey, obtaining a total of 240 responses. Most said the road show didn't change their minds. But 49 percent said they plan to participated in the offering. That's up from 43 percent according to a similar ConvergEx survey in July. "These are very positive numbers for an IPO of record-breaking size," ConvergEx market stratetist Nicholas Colas said. Alibaba's IPO has drawn frequent comparisons with that of Facebook Inc.

. In May 2012 Facebook shares were launched at $34.03 and closed its first full month of trading at about $30 a share. Facebook later fell as low as $20 a share in August 2012. It traded recently at $75.93. a higher - than - anticipated price has also reduced expectations for appreciation over the first month of trading. ” decision to boost the price range of its initial public offering has resulted in lowered expectations that