Alibaba Holdings has finally filed for an IPO in the United States. The Chinese internet giant controls the vast majority of e-commerce in the east-Asian economy. The official filing is the first part of a process that is likely to take weeks or months. Investors interested in the market, and growth stocks in general, will be watching every move that Alibaba, and the tech stock market, make in the coming months.
This afternoon’s filing said that the company was anticipating an IPO of $1 billion, but that number is likely to change as the date approaches. According to a Reuters report on the company’s filing, the offering is likely to be the biggest in the history of the tech industry. That title is currently held by Facebook Inc (NASDAQ:FB) which raised $16 billion the day it went public.
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Alibaba IPO hits New York this Summer
Alibaba is likely to be one of the most talked about companies among those following growth stocks in the coming months. The début of Twitter Inc (NYSE:TWTR) will likely be dwarfed by the size company’s offering, and the talk of growth in the sector may become too much to bear for more value-oriented investors.
As these things go, there is not clear date for the first offering of shares in Alibaba at this stage. Likewise there is no information on the likely size of the offering, in number of shares, nor on the price of an individual shares. Analysts attempting to value the company have guessed at a market price of around $160 billion.
Yahoo! Inc. (NASDAQ:YHOO) is going to be a massive beneficiary from the offering of Alibaba shares, given that the company owns 24% of the company, and it’s stock is the one to watch to see how the IPO might look this Summer.
Yahoo struggles as Alibaba flies
Yahoo! Inc. (NASDAQ:YHOO) owns a substantial part of Alibaba, and the company is likely to profit massively from the company’s IPO. The company has become an indirect way for investors to expose themselves to Alibaba performance in the last year or two, and the Chinese company’s performance has helped drive Yahoo! Inc. (NASDAQ:YHOO) valuation sky high.
In after market trading Yahoo! Inc. (NASDAQ:YHOO) had lost about 0.5% of its value, at time of writing, on the back of the Alibaba IPO announcement. The Marissa Mayer-led company is going to profit massively from its timely investment in China’s internet market, but the company’s prospects after it sells part of its share in Alibaba is less than certain.