This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-27302120
The article has changed 4 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Alibaba files for public share sale | |
| (about 4 hours later) | |
| Chinese internet giant Alibaba has filed documents for a public share sale in the US, which is widely expected to be one of the biggest in history. | |
| In its filing, the company said it is seeking to raise $1bn (£589m). But that figure is seen just as an estimate to calculate various fees. | |
| Analysts expect it to raise more than $15bn and top Facebook's share sale. | |
| Alibaba did not disclose details of the number of shares it intends to sell or their price range. | |
| It also did not reveal which US exchange - the Nasdaq or New York Stock Exchange - it is looking to list its shares on. | |
| 'Global powerhouse' | |
| Founded 15 years ago by Jack Ma, the firm has been a dominant force in e-commerce in China and is now the biggest online retailer in the country. | |
| While it has been a key player in the sector for many years, its filing gave investors the first glimpse at the firm's finances. | |
| The firm generated revenues of 40.5bn yuan ($6.5bn; £3.8bn) in the nine months to the end of December 2013, making a net profit of $2.9bn. | |
| The documents reveal that last year, the value of all merchandise sold on Alibaba's various platforms was $248bn, with more than 11.3 billion orders placed. | |
| In a nod to the importance of smartphones, the firm said it was responsible for 72% of mobile commerce in China. | |
| That is important as Alibaba has been locked in competition recently with rival Tencent - China's largest Internet firm - to attract mobile shoppers. | |
| Analysts said there was likely to be keen interest in the share sale as investors hope the firm will be able to replicate its success in China on a global scale. | |
| "If it is able to transport that kind of power to outside China, it has the potential to become a true global e-commerce powerhouse," said Roger Entner, lead analyst and founder of Recon Analytics. | |
| Windfall? | |
| Among the major shareholders set to benefit from the listing are US technology giant Yahoo and Japan's Softbank. | |
| Yahoo owns a 22.6% stake in the firm, while Softbank owns 34% of the company. | |
| Yahoo had paid $1bn for a 40% stake in Alibaba in 2005. | |
| It sold half of that stake back to Alibaba in May 2012 for $7.1bn. That deal saw the Chinese firm pay Yahoo $6.3bn in cash and up to $800m in Alibaba's preferred stock. | |
| According to an agreement between the two firms, Yahoo has to either sell a part of its remaining stake in Alibaba back to the Chinese firm ahead of the share sale, or include its shares in those being sold to investors. | |
| SoftBank will continue to own more than 30% stake in Alibaba after the listing. | |
| Alibaba's various other operations include a cloud computing business and a group buying website. | |
| Its online payments processing network, Alipay, was spun off in 2011 and is not a part of the listing. | |
| The filing with the Securities and Exchange Commission is just the first step in what is expected to be a months-long process before Alibaba's stock listing. | The filing with the Securities and Exchange Commission is just the first step in what is expected to be a months-long process before Alibaba's stock listing. |