The Chinese Internet colossal Alibaba Group Holding Ltd. is all set to set a historical raise of up to $24.3 billion U.S. initial public offering in its upcoming IPO.
Alibaba and its early investors intent to sell its stock for a price between $60 and $66 per share, according to a US Securities and Exchange Commission filing published Friday that accounts to selling of 368 million shares. At the midpoint, this would value it at about $162 billion. If interest increases, the IPO price could rise more than $66 per share.
Struggling online portal Yahoo, which was an early investor in Alibaba, plans to sell 121 million of its 524 million shares in the deal.
The much awaited debut of the e-commerce company on the New York Stock Exchange is planned under the name ‘BABA.’
The dominant power in Internet retail in China might make its debut from Sept. 18 through Sept. 26.
Alibaba is a is a privately owned Hangzhou-based group of Internet-based e-commerce that operates everything from behind-the-scenes, business-to-business e-commerce capabilities to retail services.
Alibaba was started in an apartment by a schoolteacher Jack Ma, now Alibaba Chairman and former CEO, 15 years ago. The company’s network of sites includes Taobao, China’s largest consumer-to-consumer online shopping platform similar to eBay; Tmall, a shopping hub for brands like Apple and Gap, to sell direct to customers and AliExpress, an online retail service made up of mostly small sellers offering products to online buyers. as well as Alibaba.
On June 11, 2014, Alibaba launched U.S. shopping site 11 Main, in competition with Amazon and eBay.
In its last fiscal year ending March 31, Alibaba earned $3.7 billion, making it more profitable than eBay Inc. and Amazon.com Inc. together.
“When an Internet company of our scale that originated from 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,”, Ma said in a letter conveying the company’s aims and vision to convince investors.
Facebook raised $16 billion during its IPO and if successful, Alibaba’s IPO will raise even more than Facebook. Alibaba can also end up beating out Visa’s record of raise of $19.1 billion in 2008 — the largest IPO in US history so far.