Chinese e-commerce giant Alibaba is set to raise up to $US21 billion in its IPO, with shares expected to be priced between $US60 and $US66, according to a filing with the SEC.
The company’s updated filing shows that the offering will be comprised of up to 320 million shares, with the company itself offering 123 million shares and investors including founder Jack Ma, executive chairman Joe Tsai, and Yahoo, offering 197 million shares.
At these prices, the company would be about $US160 billion at the midpoint of this range, and at this valuation, the company would be one of the largest IPOs in U.S. stock market history.
Alibaba is a massive Chinese e-commerce behemoth that is part Amazon, part eBay, and part PayPal, among other things.
According to Bloomberg, at the high-end of the range, Alibaba’s capital raise would surpass the $US19.7 billion raised by Visa in its March 2008 IPO.
Alibaba’s filing shows Yahoo will sell roughly 121 million shares in the IPO, giving Yahoo a 16.3% stake in Alibaba after the offering. Currently Yahoo holds a 22.6% stake in the company.
Earlier on Friday, CNBC reported that Alibaba plans to begin trading on the New York Stock Exchange on Sept. 19, and is likely to price shares on Sept. 18. Shares will trade under the ticker BABA.
Alibaba is also set to begin its roadshow, or meetings with investors ahead of its public offering, next week, and The Wall Street Journal reports the company will meet with investors in Asia, Europe, and the U.S.
Reports ahead of the IPO have indicated that Jack Ma, the company’s founder and chairman, is China’s richest person, with a net worth of $US21.8 billion owing to his 7.3% in Alibaba and his nearly 50% stake in Alipay, its PayPal-like payment unit.
Back when Alibaba filed for its IPO in May, BI’s Jay Yarow pulled these three charts from the company’s massive prospectus that basically explain what Alibaba does.
In late August, BI’s David Smith highlighted this chart that shows how Alibaba’s revenue from mobile has grown steadily. Additionally, research from Business Insider Intelligence indicates that the value of all merchandise sold over Alibaba’s sites was roughly four times greater than that of eBay.
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