"Jack Ma is very astute and he noticed that Facebook tripped over its initial public offering and doesn't want to do the same thing, so better to low ball it a bit and let it rise as it goes into the market than let the public investors feel like they have been short changed and had paid too much," Roger Kay, president at Endpoint Technologies told CNBC on Monday.
The Chinese e-commerce behemoth on Friday said it expects to price its IPO between $60 and $66 per share to raise as much as $24.3 billion – making it the largest U.S. public offering in history.
At $66 a piece, Alibaba would be valued at $163 billion – below analysts' expectations for a valuation of more than $200 billion.
Facebook, the world's largest technology IPO to date, raised $16.01 billion in its May 2012 debut in New York. It had a market capitalization of $81.25 billion, according to Associated Press.
Shares of the social networking giant lost one-third of their value within two months of their debut.