In what could be termed as the world’s largest initial public offering (IPO) in years, Chinese e-commerce giant Alibaba Group is expected to launch its US IPO in the first week of September.
According to reliable sources, the company is likely to unveil it IPO on September 8 and wants to complete the process after its months-long dialogue with the US regulators.
The big launch could raise over USD 20 billion, making the deal the world’s largest in years. Following the IPO launch, Alibaba shares are expected to begin trading as soon as September 18 or 19 in New York, sources said.
The IPO launch was initially planned by the end of August this year but it was postponed to September. Sources say the delay was because of the requirement to secure regulatory approval for the deal and investor summer vacations.
The sources said that as Alibaba was figuring out a launch date, it received final feedback from the US Securities and Exchange Commission (SEC), facilitating its early launch in September.
Meanwhile, the dialogue between the company and the fed regulator is underway and the complete process is expected to wrap up by next week. The final nod of SEC to the IPO listing documents is necessary for Alibaba to set a price and launch a deal.
Alibaba’s stock will list under the symbolic name ‘BABA’ at the New York Stock Exchange (NYSE).
As per the June SEC filing, Alibaba has opted for employing a unique partnership model which was formalized in 2010. It would be applicable once the firm goes public.
According to the company, it opted for the model as it consider it to be more fair than a dual-class stock structure, which allows only a handful of insiders to control the company. The company said that under the opted model it will elect new partners every year.
The deal proved to be more beneficial for Alibaba as its profits nearly tripled to USD 3.75 billion. The company’s revenue rose more than 50 percent to USD 8.45 billion for the fiscal year that ended March 31, according to the filing.