Chinese e-commerce company, Alibaba is all geared for a milestone IPO at the end of next week, which could turn to be biggest IPO in US history, raising over 24 Billion USD to Alibaba. Alibaba set the stage last week for an IPO that is expected to valued the company at USD 155 billion.
As per a CNN Money report, it is starting to expand a presence in the U.S and now owns stakes in companies including Uber, Lyft and search engine app Quixey.
Initially, Alibaba stock is set to price between USD 60 and USD 66 a share, if it goes at the high end of that range, then it can expects a valuation that is within striking distance of Facebook, which is currently valued at about USD 201 billion. The Facebook went public in 2012 and is roughly in line with Google’s 400 billion market cap and Amazon’s USD 160 billion market valuation.
The Chinese company calls itself the “largest online and mobile commerce company in the world,” and generated USD 248 billion of gross merchandise volume in 2013. It is followed by Amazon.com’s USD116 billion, according to estimates by IDC.
Recent Updates: In March this year, Alibaba has acquired a 35% stake in Intime Retail, an offline retail company with presence throughout China, for USD 692 million. Alibaba currently operates in China’s ecommerce market with its two major sites viz. Tmall and Taobao. Other recent investments of Alibaba included an undisclosed amount in Sina Corp’s Weibo (18% stake) and USD 800 million in ChinaVision Media Group. (60% stake).
Also in April, it announced that Alibaba group along with Yunfeng Capital will be acquiring an equity stake in Youku Tudoufor a combined investment of USD 1.22 billion. Both the companies will indirectly hold approximately 16.5% and 2.0%, respectively, of the total issued (707,250,870) and outstanding shares (13,869,990) of the company on a fully-diluted basis and at a purchase price of US$1.6944 per share.
The firm had invested USD 206 Mn in US eTailer ShopRunner, which is called as Amazon’s rival.
After shifting its focus on mobile payment services, Alibaba has teamed up with Sina Weibo and jointly launched a Weibo Payment service that will allow verified Weibo accounts to conduct third-party e-commerce business on the blogging website.
Last month, It had invested USD 120 million in mobile gaming company, Kabam.
Till date, Alibaba has invested in 13 companies including this latest one and secured total USD 1.1 billion in four funding rounds. It is operating online marketplaces for both international and domestic China trade along with an online payment system, AliPay.
At present, Alibaba Group has 12 major businesses and affiliated entities, including alibaba.com, Taobao.com, Tmall, Alipay, koubei.com, Aliyun, etao.com, net.cn, Juhuasuan.com, CNZZ, and Onetouch. It was officially established by its 18 founders in 1999 and went Public on Nov 16, 2007.
Image Credit: CNN MoneyCategory Business Ecommerce Investments