Chinese ecommerce giant Alibaba has decided to go the American stock market, despite first aiming at the Hong Kong stock exchange. Alibaba is in charge of 80 % of Chinese ecommerce.
11 billion euro
Alibaba’s IPO will be America’s largest since Facebook entered the stock exchange 2 years ago. It is currently in talks with Citigroup, JP Morgan, Morgan Stanley, Goldman Sachs, Deutsche Bank and Credit Suisse to see who will be the underwriter.
Estimations state that Alibaba has a value of at least 100 billion euro and an IPO should generate a value of more than 11 billion euro. For whichever bank is involved, that would mean an income of more than 200 million euro at a 1.75 % commission. The current expectation is that Alibaba will have its IPO somewhere in the third quarter of this year.
It has also recently announced that American retailers will be able to use Alibaba to sell their products more easily in China as it will open new distribution centres in the United States and offer its payment service, Alipay, to American retailers. It will also launch an American marketplace called 11Main.com.