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Alibaba confirms plans to list in the U.S.

  • Alibaba has confirmed reports that it intends to carry out an IPO in New York - and not in Hong Kong - as it looks to become a "more global" and transparent company.
  • The Internet giant could reportedly raise over $15B in the offering, which would make it biggest U.S. IPO ever by a Chinese company. Analysts reckon that the firm's market cap could top $130B.
  • Alibaba hasn't decided which exchange it will list on, nor on a date.
  • Credit Suisse, Deutsche Bank, Goldman Sachs and JPMorgan will play major roles in the IPO, while Citigroup will have a smaller part.
  • Alibaba said that it might consider listing its shares in China in the future, although it didn't provide details.
  • Alibaba investors Yahoo (YHOO) and Softbank (SFTBF) should be in line for a healthy bonanza from the IPO.
  • The WSJ provides a primer on Alibaba's busines model, calling the company a "a mix of Amazon, eBay and PayPal with a dash of Google thrown in." Alibaba also has "some uniquely Chinese characteristics."
  • ETF: IPO (PR)
Comments (15)
  • Azam O.
    , contributor
    Comments (30) | Send Message
     
    IPO is too soon. Company is still in very high growth phase. I wish they would explain reasons to rush it.
    16 Mar, 04:57 AM Reply Like
  • Tales From The Future
    , contributor
    Comments (4472) | Send Message
     
    Maybe the company wants to list as long as the markets like all tech IPOs and the valuations are still hot (high multiples), with the overall markets near all-time highs. This happy period won't last forever....
    16 Mar, 05:25 AM Reply Like
  • King Rat
    , contributor
    Comments (610) | Send Message
     
    Agreed there. Also a lot of the future growth is baked into the current valuations so they are not losing out on much. What this does is let vested officers cash out, some of them having been paid squat in salary will soon be multimillionaires. Wait 2 years and they may get more, they may get less, but they will get zero in the mean time.

     

    If somebody wanted an IPO for norevenuetechhype.com in 1999, they could have raised several hundred million dollars with a multi-billion dollar valuation. 2 years later highgrowthtechsuccess.com would have gotten a pat on the back and "good luck".

     

    "You can't time the market" but tech IPOs are doing a fine job of it.
    16 Mar, 05:44 AM Reply Like
  • Tales From The Future
    , contributor
    Comments (4472) | Send Message
     
    The IPO should also provide a windfall for large stakeholder Son (Softbank) who could use a portion to build out S or buy more US telecoms/spectrum:

     

    http://reut.rs/1cNydwa
    16 Mar, 02:58 PM Reply Like
  • Windsun33
    , contributor
    Comments (4265) | Send Message
     
    They want to get the IPO out before it becomes even more obvious that they are losing market share, especially in the online shopping arena.
    17 Mar, 08:16 AM Reply Like
  • Joe2922
    , contributor
    Comments (409) | Send Message
     
    Funny typo!: Alibaba hasn't decided which exchange it will lost on, nor on a date.
    16 Mar, 07:29 AM Reply Like
  • Golfbud
    , contributor
    Comment (1) | Send Message
     
    Also, you think pressure from their major equity stakeholders, Softbank and Yahoo, each with their own recent and future acquisition interests to fund, has anything to do with it? No doubt Softbank needs their currency to go after T-Mobile and continue to make invest in capex for it and Sprint.
    16 Mar, 10:15 AM Reply Like
  • Guy in Ithaca
    , contributor
    Comments (360) | Send Message
     
    I don't care too much about the reasoning for their timing at this point-- just want to have some fun making money. This is fun!
    16 Mar, 01:57 PM Reply Like
  • James Sands
    , contributor
    Comments (2005) | Send Message
     
    Yahoo needs all the healthy bonanza they can get...they'll probably never have as good of an investment as Alibaba again and burn through cash to minimal rev growth.
    16 Mar, 02:29 PM Reply Like
  • Victor Liang
    , contributor
    Comments (173) | Send Message
     
    If I remember correctly, Alibaba is far more profitable than Amazon.
    16 Mar, 02:30 PM Reply Like
  • James Sands
    , contributor
    Comments (2005) | Send Message
     
    It will be great to see the geographic sales breakdown. I am interested in seeing how much revenue comes from North America and Europe.

     

    As a predominantly Asian company, we know cost of sales and operating expenses are lower as labor is much more cheap in Asia and SBC is typically not paid out to employees other than management.

     

    Penetration outside of the Asian market, especially for Chinese businesses has not be achievable on much scale. There are Internet exceptions for sure and potential is there.

     

    Alibaba definitely provides an interesting opportunity to see how successful they have been to this point. It will also be good to get more transparency for their business model.
    16 Mar, 02:34 PM Reply Like
  • Guy in Ithaca
    , contributor
    Comments (360) | Send Message
     
    I've been reading some really interesting stuff written by some very smart investors about bull and bear markets on another thread (The Four Horsemen... etc.). Yet, for now, it seems to me that the imminent Alibaba IPO will be to the market what the Saturn V rocket was to the moon launch way back when. I find it hard to imagine a correction leading up to this massive launch. The Alibaba IPO has to represent a terrific psychological push. That having been said, the right stocks survive corrections and continue their ascent. I was just looking at a pretty Google graph today which makes the point.
    16 Mar, 05:13 PM Reply Like
  • martell
    , contributor
    Comments (133) | Send Message
     
    I have been in the stock market since 1983. I do research in technology Co.'s and I have been doing research as far as internet co.'s since the days of the internet. Netscape was the first internet Co. that went public & Amazon & Ebay & others.
    Around the late 1990's before the internet bust in 2000. I still do research before I buy stock . I remember when Google went public in 2004. I do research in Chinense Co,'s especially Chinese internet Co.'s
    In 2005 Baidu, the Chinese internet Co. went public on Aug. 5th they priced it for $27.00 and it doubled to $66.00 on the open. The next day it went as high as
    $122.50 a share then it went down to around $45.00 a share after that it never looked back.

     

    There is a greater Co. that has more potential that Baidu and it is Alibaba Group. It is going public in the USA aroung the third quarter of this year. It has a market cap aroung $150 billion dollars & it is a lot bigger than Baidu. Baidu's market cap today is aroung $59 billion dollars. I think that Alibaba Group has greater opportunity than Baidu. I think that Alibaba Group is going to be the biggest Chinese Internet Co. on the New York Stock Exchange.

     

    Baidu comes in second and JD.Com will be third and Weibow will be fourth, which is also planning an IPO. I believe that when Alibaba Group does go public it is possible that it's stock will triple like Baidu. I beleve that Alibaba Group stock one day can get as high as Baidu stock or higher long term. It will be one of the greatest internet co.'s in the world in our life time. It has the potential of becoming a trillion dollar co. Google is the biggest internet co in the world and is #1 and Alibaba Group will become the 2nd biggest internet co. in the world and the biggest e-commerence co. in the world.
    16 Mar, 06:38 PM Reply Like
  • Guy in Ithaca
    , contributor
    Comments (360) | Send Message
     
    Martell- thank you for the educated information.

     

    I believe YHOO and & SFTBY will move up dramatically Monday on the strength of the widely confirmed news that Alibaba's IPO will be in New York. I think this will happen regardless of the direction of the market as a whole. Nothing is certain of course but people are looking for positives right now. This is a big one.
    16 Mar, 10:16 PM Reply Like
  • fairyye
    , contributor
    Comment (1) | Send Message
     
    i like
    17 Mar, 02:25 AM Reply Like
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