Alibaba has emerged as the largest online retailer in the last few years. With its sales going very strong, the company is now gearing up for an IPO which is expected to rake in a whopping $20 billion.
Alibaba’s profits have been unbelievably good in the past few years. During the first nine months of 2013, the company brought in a revenue of $6.51 billion with a profit of $2.85 billion. According to the filing of its IPO, Alibaba plans to offer up only 12% of its stock.
According to market analysts, the company stands to round up $20 billion as a result of offering this 12% stake. If that turns out to be true, it would peg Alibaba’s market value at $165 billion. The company currently has 8 million sellers and has been registering extraordinary growth.
It is interesting to note here that Yahoo has a 24% stake in Alibaba. If the IPO estimates are the same as divulged above, Yahoo’s stake will be worth $39.84 billion as a result of this IPO. This could be a huge turn in the fortunes of the company which has struggled to stay afloat in the tech world.
The IPO is expected to be the largest of its kind during 2014. Some of the biggest entities of the financial world, including JPMorgan, Goldman Sachs, Citigroup, Morgan Stanley and Credit Suisse are underwriting this deal. With Alibaba’s growth expected to stay strong over the coming years, many are eagerly waiting for the company’s stock to become available. However, we are yet to hear about a definite date for the IPO.
Source: SEC Filings