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Alibaba suffers rare 'down round' investment

Nov 22, 2018 by The Passage Team
Alibaba suffers rare 'down round' investment

China’s Babytree Group, a parenting website operator, has priced its Hong Kong IPO at the bottom of a marketing range, people close to the deal said, reducing its valuation and implying a ‘down round’ for investor Alibaba Group Holding Ltd.

Babytree will sell shares in the IPO at HKD 6.80 each.

The IPO will value Babytree at HKD 1.5 billion, rather than the HKD 2 billion valuation in late May when Alibaba invested HKD 214 million. That would mark a rare instance of a tech-related firm suffering a down round, or a fall in valuation following new investment.

Source: Reuters

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