Alibaba expected to make big splash with IPO
The initial public offering of Chinese e-commerce company Alibaba is expected to make it the biggest technology listing in the United States.
A chef walks through the main campus of Alibaba Group, in Hangzhou, Zhejiang, China, Aug. 27.
AP
Chinese e-commerce company Alibaba Group Holding Ltd said its initial public offering is expected to be priced at between $60 and $66 per American Depository Share, valuing the company at about $162.69 billion at the top end.
The much-anticipated IPO would raise about $21.13 billion, making it the biggest technology listing in the United States.
Alibaba plans to launch its New York stock market debut in the week of Sept. 8, a person briefed on the matter told Reuters in late August.
"From the very beginning our founders have aspired to create a company founded by Chinese people but that belongs to the world," Executive Chairman Jack Ma said in a regulatory filing with the U.S. Securities and Exchange Commission.
Alibaba, in which Yahoo Inc currently holds a stake of 22.4 percent, will decide on its final price after a globe-spanning roadshow expected to kick off in coming days.
The company is selling 123.1 million of the 320.1 million ADSs in the IPO, while selling shareholders, including Yahoo, Jack Ma, and executive vice chairman Joe Tsai, are offering the remaining.
Alibaba's valuation, according to the top end of the expected IPO price range, fell short of expectations. Some industry analysts had expected the company to try and garner a valuation north of $200 billion, ranking the Chinese company amongst the 20 largest publicly traded U.S. companies.
Alibaba accounts for about 80 percent of all online retail sales in China, where rising Internet usage and an expanding middle-class helped the company generate gross merchandise volume of $296 billion in the 12 months ended June 30.
The Chinese e-commerce giant's revenue accelerated in the April-to-June quarter on strong gains in its mobile business, providing investors with what may be the final glimpse of the company's financials before its expected landmark market debut.
Revenue in the June quarter increased 46 percent year-on-year to $2.54 billion, a faster pace than the 38.7 percent growth in the previous quarter.