Alibaba to enjoy post-IPO pop

The shares of Chinese e-commerce giant Alibaba Group could gain over 20 percent on the first day of their initial public offering (IPO) in the U.S., said a British analyst on Thursday.

"The high expectations that preceded the listing have meant that the shares will enjoy a post-IPO 'pop'," Chris Beauchamp, Market Strategist at IG Group, told Xinhua.

He said that the IG grey market on the closing market cap suggested that the shares will gain that much on their first trading day. IG Group is a London-based world-leading provider of contracts for difference and fiancial spread betting to retail traders.

But Chris said it would be unwise to go chasing after the shares in the weeks to come. "The IPOs of Facebook and Twitter are instructive here, given that both firms saw heavy price declines in the months after their listing. The same fate might befall Alibaba - even given its impressive sales and profit growth," he said.

"Alibaba's entry into publicly-traded markets will be greeted with enthusiasm but sustaining that momentum in the face of such a high valuation will be a tricky task," he added.

It was reported that the shares were expected to be priced after the markets close at 4 p.m. Thursday and start trading on the New York Stock Exchange on Friday under the ticker "BABA."