Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

Alibaba sets IPO share price, to raise $25 bn

Online retailing giant Alibaba employees/AFP

Online retailing giant Alibaba employees/AFP

NEW YORK, September 19- Chinese online retail giant Alibaba is poised for a record breaking stock market debut on Friday, with shares priced at $68 in a public offering that could be valued at $25 billion.

The company will step into the spotlight on the New York Stock Exchange, priced at the top of the $66-$68 per share range announced earlier this week, according to documents filed with US regulators.

The amount raised by the initial public offering (IPO) would be $25.02 billion if options are exercised for additional demand, breaking the 2010 record of China’s AgBank of $22.1 billion.

Alibaba founder Jack Ma was expected to ring the opening bell on Wall Street for the market debut, according to persons familiar with the IPO.

Alibaba would have a market value of around $168 billion based on the price, making it bigger than Amazon.

The IPO will also create instant Silicon Valley-style millionaires among Alibaba’s employees in China, as the company emulated other tech firms like Microsoft and Google in handing out stock to employees at all levels.

Before the IPO, around 6,000 current and former employees of Alibaba and affiliates owned nearly $8 billion in stock, according to company IPO documents.

Over the years many more shares were given to employees who have already cashed out.

Ma had asked its employees to be prepared for the changes this IPO could bring along and warned of possible challenges.

“We’ve worked hard, but not just so we could turn into a bunch of tuhao,” Ma reportedly said in an internal letter sent to its employees in late July, referring to a Chinese expression of “new money”.

Advertisement. Scroll to continue reading.

 

– International ambitions –

 

The IPO allows investors to get a piece of the huge Chinese market, but it also will fuel Alibaba’s international ambitions.

Alibaba’s consumer services are similar to a mix of those offered by US Internet titans eBay, PayPal and Amazon, and it also operates services for wholesalers.

It is known for the giant Chinese online marketplace Taobao, among other services.

The company earlier this year announced plans for a US marketplace called 11 Main, which is currently in a test phase.

Alibaba Group made a profit of nearly $2 billion on revenue of $2.5 billion in the quarter ending June 30. Revenue rose 46 percent from the same period a year earlier.

Advertisement. Scroll to continue reading.

Pages: 1 2

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...