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

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

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Zach Miners

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?