Alibaba Group Holding Ltd said on Sunday it has decided to file for an initial public offering [IPO] in New York as soon as April, ending months of speculation about where China’s largest e-commerce company would sell its shares after talks for a Hong Kong stock exchange listing fell apart last year.
“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.”
Analysts estimate that an Alibaba IPO could have a value of at least $140 billion, and the proceeds could exceed $15 billion. The sale has the potential to be the tech industry’s largest IPO offering since Facebook (FB) raised $16 billion in May 18, 2012.
The Wall Street Journal has reported that the Hangzhou, China-based company, whose revenue in the three months through September rose a whooping 51% y/y to $1.776 billion, giving the company a net profit of nearly $800 million, could launch its IPO as soon as April.
Shares of Yahoo Inc. (YHOO), which owns a 24% stake in Alibaba that could be worth $37 billion at the average of analysts’ estimates of Alibaba’s value – rose on the news, closing up 37 cents, or 1%, at $37.60 on Friday.