Seeking Alpha

WSJ: Alibaba IPO process could start at month's end

  • Alibaba (BABA) could launch its IPO process (roadshow included) at the end of July, sources tell the WSJ. With the process typically taking 2 weeks from start to finish, an IPO could happen around mid-August.
  • Bloomberg reported in June Alibaba was eying an Aug. 8 IPO. The Chinese e-commerce Chinese is believed to be mulling a $20B+ offering.
  • Yahoo (YHOO), whose Q2 results arrive on July 15, is required to sell a decent chunk of its 22.6% stake at IPO time. Many on the Street are hoping details will be given on the Q2 CC about Yahoo's plans for the windfall. Topeka estimates post-tax proceeds from Yahoo's IPO share sale of $9B.
From other sites
Comments (10)
  • NLTInvestor
    , contributor
    Comments (316) | Send Message
    I thought BABA was worth $180 billion... isn't that a 39.6 valuation with a 22% stake or is Topeka saying that the initial selling would be 9 billion..
    10 Jul, 06:22 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (857) | Send Message
    Just the initial sale. Yahoo is required to sell a little less than half its stake at the time of the IPO.
    10 Jul, 06:24 PM Reply Like
  • SmartyMarty
    , contributor
    Comments (19) | Send Message
    What about the 37% of BABA that is owned by SFTBY? No matter what they do with it, it is bound to make a significant impact on SFTBY.
    10 Jul, 07:08 PM Reply Like
  • maxbelski
    , contributor
    Comments (49) | Send Message
    significant POSITIVE impact on SFTBY.
    10 Jul, 10:03 PM Reply Like
  • stockbuyer2014
    , contributor
    Comments (128) | Send Message
    Yahoo shares are very undervalued right now
    10 Jul, 07:11 PM Reply Like
  • bently
    , contributor
    Comments (514) | Send Message
    Things should start heating up early next week, depending on the July 15 earnings report from Yahoo. Meanwhile, estimates of the share value of YHOO have been coming down slightly, recently to $40 per share but that seems impractically low and we're in a current of interest right now that will excite the press to grab readership by playing the devil's advocate with headlines and events. On this matter, also be careful of Internet articles, they are not always arranged by recent date first or not dated at all and it is easy to start choking on old data. The WSJ has posted an interesting article today, some of which is summed up above;it is titled : "Alibaba is Set on Path to IPO" and is worth glancing at for background information. Meanwhile.I'd like to see the Alibaba team stop worrying about "8" as a lucky number in an IPO date and remind them that the number 7 is also a lucky number in China as well as the rest of the world.
    10 Jul, 08:41 PM Reply Like
  • Mick Hailu
    , contributor
    Comments (20) | Send Message
    I agree with bently. The street and many analysts who are lowering their price targets for Yahoo are doing so because their lack of faith in the core business. As a pure portfolio play, Yahoo is surely worth at least $42. Excluding an after-tax benefit of $27-30 per share from Alibaba post IPO, Cash & ST investments provide $3 per share and Yahoo Japan $7 per share. As long as Yahoo doesn't drop the ball that much from the Q3 report and convince investors the company is worth below $7, this is certainly a trade with limited downside.
    11 Jul, 02:35 AM Reply Like
  • vikramnjnjjdjnd
    , contributor
    Comments (667) | Send Message
    Bently, thanks for reminding me on yhoo's earnings report that should beat estimates thanks to alibabas achievements. Yahoo is nothing without alibaba.
    11 Jul, 03:08 AM Reply Like
  • Stephen Tips
    , contributor
    Comments (311) | Send Message
    “The Chinese e-commerce Chinese . . . ” Who are these folks?


    I think it should have read, “The Chinese e-commerce giant,” perhaps?


    Is there an editor anywhere? Hello? Anyone? Edit!


    Ha, ha, xièxie . . . YHOO up.
    11 Jul, 03:11 AM Reply Like
  • coffeexxx
    , contributor
    Comments (17) | Send Message
    SFTBY is looking far more interesting short,medium and longterm. It is cheap at the moment! Yahoo will bounce with Alibaba but depending how much BABA they sell and what they waste their funds on Yahoo will be a choppy ride to flat medium term. There may be an interesting stock swap with Yahoo Japan shares as part of the tax free measures involved in selling BABA so Yahoo Japan another good stock to pop with BABA IPO. SFTBY is looking better than Yahoo for quickest gain IMHO.
    11 Jul, 05:02 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector