Blog Post

Alibaba files to raise billions in its initial public offering

Stay on Top of Enterprise Technology Trends

Get updates impacting your industry from our GigaOm Research Community
Join the Community!

Alibaba, one of the top three web companies in China, has filed to raise at least $1 billion via an initial public offering. When it finally hits the public markets analysts expect it to be valued at around $200 billion, making it larger than internet darlings like Facebook, LinkedIn and Twitter.

Wall Street is eager for the IPO, with many seeing it as a chance to buy into the growing Chinese market. The New York Times expects the company expects the company to sell between $15 billion and $20 billion in shares. Alibaba operates several websites, including a Chinese e-commerce site, a site where U.S. buyers can buy from China and a cloud computing arm called Apsara that made $105 million in the last twelve months, about 2 percent of its sales.

Last year, Alibaba had net income of $1.33 billion on revenue of $5.55 billion, for its fiscal year that ended March 2013. The IPO will be a big deal for Yahoo, which invested in Alibaba back in 2005, and holds a 24 percent stake in the company on non-diluted basis, according to Kara Swisher over at Re/Code. Yahoo will have to sell just over 10 percent of that into the public offering. Yahoo’s shares are trading up on the news of the filing.