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.