Menu
Chinese e-commerce giant, Alibaba, seeks up to $US21 billion in US IPO

Chinese e-commerce giant, Alibaba, seeks up to $US21 billion in US IPO

Shares will be priced between $US60 and $US66 in one of the biggest IPOs ever

Alibaba is looking to raise as much as $US21 billion in its U.S. IPO, according to documents filed Friday, making the Chinese e-commerce company's debut one of the largest initial public offerings in U.S. history.

Its stock will be priced between $US60 and $US66 per share, according to a prospectus filed with the U.S. Securities and Exchange Commission. At the top of that range, if Alibaba sells just over 320 million shares as planned, it would bring in just over $21 billion. According to published reports, using the midpoint of that range Alibaba would be valued around $160 billion.

The company is expected to begin its global roadshow in New York City on Monday, when executives will meet with potential investors before moving on to Europe, the Middle East, and Asia. The roadshow is expected to end on September 18 with the pricing of the shares, which would go on sale the following day. Alibaba will trade on the New York Stock Exchange under the symbol "BABA."

Previous IPO documents showed Alibaba sold more merchandise than eBay and Amazon combined. But instead of using its own inventory of goods, as Amazon does, Alibaba manages an online marketplace for connecting merchants with consumers. The company runs the Taobao Marketplace and Tmall, two of China's largest online retail sites. In addition, Alibaba affiliate Alipay is China's largest third-party online payment service.

Alibaba has sold to U.S. customers through its supplier sites AliExpress and Alibaba.com, but the company is looking to expand in this country. It recently launched a new site called 11Main, which currently acts as an invitation-only marketplace offering items from specialty shops for clothing, jewelry and the arts.

One of the company's biggest challenges in the US is that consumers don't know the company well.

"When an Internet company of our scale that originated in China enters the global scene, you should expect that it will encounter skepticism from different directions due to differences in cultural perspectives, values and even geopolitical positioning," said founder and executive chairman Jack Ma, in an accompanying letter to investors.

Yahoo holds roughly a 24 percent stake in Alibaba. But the Internet company will sell roughly 121 million shares in the IPO, according to the prospectus, decreasing Yahoo's ownership to 16 per cent. At $US63 per share, the stock Yahoo is selling would be worth about $US7.62 billion.

Alibaba was formed in 1999 as a way to help small exporters in manufacturing and trading reach global buyers.

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags internetbusiness issuese-commerceebayfinancial resultsamazonalibabaInternet-based applications and servicesSEC Filings

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments