In a step to get public, Chinese e-commerce giant Alibaba has filed for its initial public offer (IPO) in the US. According to the filing at the US Securities and Exchange Commission, the company is seeking to raise $1 billion, though it is expected to get as high as $15 billion. The company claims itself as the “largest online and mobile commerce company in the world” and announced to have earned $5.55 billion revenue in the fiscal year 2013.
Alibaba sets to go public through filing IPO in the US
In the total stake of Alibaba, Alibaba Group Holding Ltd holds 80 percent while Yahoo Inc bags with 22.6 percent stake. Furthermore, the company’s founder and chairman Jack Ma owns 8.9 percent.
The filing states that Alibaba recorded $248 billion transactions through its 231 million active buyers and 8 million active sellers in the twelve months ended on December 2013. With great influence on the world’s second-largest economy, the company earned net income of $2.9 billion in the last fiscal year.
The IPO has got all the leading US investment bankers, including Credit Suisse, Morgan Stanley, Goldman Sachs, J.P. Morgan and Deutsche Bank.
While Alibaba is set to expand its business through filing IPO in the US, other technology companies like Twitter and Amazon are falling down in the stock market due to ongoing decrease in their stock prices. The transformation of Alibaba as a public company in the e-commerce sector will certainly grow its financial earnings, but it may make a competitive situation for some leading online giants such as Amazon and eBay.