Alibaba confirms plans for IPO in USA

Thursday, 08 May 2014

Chinese online retail platform Alibaba has filed documents for a public share sale in the US. In the document, the company states its intentions of raising 1 billion dollars. Market insiders however said this figure would be just an estimate to calculate various fees.

Thus, analysts expect Alibaba to raise more than 15 billion dollars with its initial public offering (IPO).

At the close of this edition, Alibaba did not disclose details of the number of shares it intends to sell or their price range.In the same vein, Alibaba preferred to keep it private whether it will float on the Nasdaq or New York Stock Exchange.

In an interview with Reuters, Hany Nada, a founding partner of GGV Capital, a venture capital firm that invested in Alibaba in 2003, said that “They want the optionality to see if a technology or trend takes off in the US, or to see if it's applicable to bring back home.”

The firm generated revenues of 40.5 billion yuan in the nine months to the end of December 2013, making a net profit of 2.9 billion yuan, reported BBC London.

As per the documents presented by the company, the grand value of all merchandise sold on Alibaba's various platforms came in at 248 billion dollars on more than 11.3 billion orders placed.

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