China's Alibaba Group is aiming to raise $1 billion in a long-awaited IPO likely to be one of the biggest in US history.
The company, founded by former English teacher Jack Ma, owns 80% share of the Chinese e-commerce market, which is the second largest e-commerce market in the world. Its sites Taobao and Tmall are the most popular of its network of e-commerce sites.
In a document filed, the company reported that revenue for the fiscal year 2013 (which ends March 31) was $5.6 billion. For the first nine months of fiscal year 2014, the company had revenue of $6.5 billion. Net income for those two time periods was approximately $1.6 billion and $3.2 billion, respectively.
The company didn't specify how much stock will be sold in the IPO, or set a price range or saying which exchange its stock will trade on.
Most analysts expect Alibaba’s IPO to bring in at least $10 billion, and sell its stock at a price that will give the 15-year-old company a market value of $150 billion to $200 billion.
According to Bloomberg, Ma started the online marketplace in 1999 and its valuation has surged -- from a few billion dollars when Yahoo acquired its stake in 2005, to $32 billion when Silver Lake Management LLC, Temasek Holdings Pte and DST Global bought in six years later, to $153 billion in a February survey of analysts.
Although it’s not nearly as well-known as Facebook, Alibaba is an e-commerce powerhouse that makes more money than Amazon.com Inc. and eBay Inc. combined, reports the Associated Press.
Ma, 49, stepped down as Alibaba’s CEO a year ago when he was succeeded by Jonathan Lu. But Ma remains Alibaba’s executive chairman and still shapes the company’s strategy.