Chinese e-commerce Giant Alibaba Readies For US IPO.
Alibaba, the Chinese e-commerce giant announced on Sunday that it will go public in the U.S. Stock exchange in a move that analysts have said it might raise up to an amount of $15 billion in the year’s biggest initial public offering. This announcement has confirmed the long awaited rumors of plans for a U.S. offering, after a large speculation over where the company would list its shares after talks For a Hong Kong stock sale failed the previous year.
Alibaba is known as one of the world’ biggest Internet companies and has boasted more than $150 billion worth of merchandise from its online platform each year, which is far more then both eBay and Amazon combined.
The company first started off as a service to link Chinese suppliers with retailers across the sea and has managed to branch out into retail e-commerce. It is barely known internationally but has launched two consumer-oriented services in the United States.
“Alibaba Group has decided to commence the process of an initial public offering in the United States,” the company said in a statement. “This will make us a more global company and enhance the company’s transparency, as well as allow the company to continue to pursue our long-term vision and ideals.”
Details on the timing or the size of the initial public offering or which exchange it would take place at, has as of yet to be disclosed to the public. Analysts have estimated that an Alibaba IPO could raise an amount of $15 billion and value the company at more than $100 billion.
Alibaba had originally planned for an IPO in Hong Kong because of the semi-autonomous Chinese financial center’s stock exchange had refused to change its rules in order to accommodate the company’s unique management structure.
Unfortunately for the company, they had failed in persuading the Hong Kong exchange to grant it an exception from its ruling listings so it could maintain a “partnership” structure that allowed top executives, who each owned 10 percent of the company, retain control of the board.
Even with these negative circumstances, the company had hinted that the door had not been completely shit on its listings in Hong Kong.
“Should circumstances permit in the future, we will be constructive toward extending our public status in the China capital market in order to share our growth with the people of China,” the statement said.