Alibaba (NYSE:BABA) isn’t the only big winner following its initial public offering Friday (September 19).
Shares for Chinese online giant were originally priced to underwriters at US$68 a piece and opened to the markets at US$92.70 — good news for beneficiaries of the Canadian Pension Plan Investment Board (CPPIB).
The CPPIB had invested C$160 million in Alibaba while it was still a private company.
CPPIB spokeswoman Linda Sims told Business in Vancouver the national pension plan made an indirect investment through a private equity fund in 2006, and made direct private investments in 2011 and 2012.
She would not disclose how much those investments might be worth following an IPO that has Alibaba valued at US$168 billion.
“We don’t tend to value ongoing investments on an individual basis, so we’re not providing that information,” Sims said.
“We’re long-term investors so we’re less interested in the excitement today.”
In a statement provided to Business in Vancouver, the CPPIB said its investment “in Alibaba is aligned with its strategy…to build a globally diversified portfolio of assets which will add value to the CPP Fund over the long term.”
Founded in 1999, Alibaba has grown into China’s largest ecommerce provider. Much of its growth has come from acquiring smaller players and cornering the market on online retailing in the world’s most populace nation.
