Business

Alibaba chooses NYSE, not Nasdaq, for what may be world’s largest IPO

Above: Alibaba chief executive Jack Ma

Image Credit: Alibaba

Analysts expect Alibaba’s upcoming public market debut to be the largest-ever U.S. IPO — and that’s very good news for the New York Stock Exchange.

Alibaba’s updated prospectus confirms that the Chinese technology giant will debut on the NYSE, verifying earlier rumors.

That’s a major blow to Nasdaq, which boasts Facebook’s stock among its tech listings, but which hosted fewer tech IPOs than the NYSE in 2013, ending its 19-year streak as the top exchange for U.S. tech IPOs.

Quite a few major tech companies snubbed Nasdaq in favor of the NYSE over the past year, including Twitter, Candy Crush maker King, and health-focused tech firm IMS Health.

And now there’s Alibaba, which is valued at around $168 billion, according to a survey of analysts in April. If it sells off a roughly 12 percent stake in the company, as Bloomberg‘s sources expect, it could raise as much as $20 billion. That would make it the largest IPO in history, ahead of Facebook ($16 billion), Visa ($17.9 billion), NTT Mobile Communications ($18.4 billion), and the Agricultural Bank of China ($19.2 billion).

Alibaba is often compared to Amazon, but with so many working parts, it also resembles sections of PayPal and Google. Even as the company branches out into sectors like cloud computing, the biggest slice of its revenue still comes from purchase commissions and advertising. It generated a massive $3.76 billion in net income in fiscal year 2014, according to the revised filing, with revenue in that period amounting to $8.45 billion. Total gross merchandise traded on Alibaba last year was $270 billion, according to research firm IDC, more than double Amazon’s total of around $100 billion.

Alibaba intends to go public in early August, though that timing could still change. It plans to list under the ticker BABA.

More information:

Alibaba.com is a B2B e-commerce company. Alibaba’s primary business is to serve as a directory of Chinese manufacturers connecting them to other companies around the world looking for suppliers. According to iResearch, it was the lar... read more »

Powered by VBProfiles


VentureBeat is studying mobile marketing automation. Chime in, and we’ll share the data.
31 comments
Robert Antwi
Robert Antwi

Only a sucker does not do their due diligence when going forward buying on Alibaba - Alibaba is a wholesalers dream - Ebay is a consumers dream - two different type of sites

Amanda Holt
Amanda Holt

Am I crazy but I could have sworn this already went ipo? Or spun off from yahoo? Post crash of '08

Kou Navi
Kou Navi

Only suckers flock to this eBay wannabe pool of scammers and knock-off sellers

James Hsu
James Hsu

Taobao and Tmall are dominant in the Middle Kingdom, and for good reason. North America is not China, and China is not North America. Look at it through the lens of the Chinese.

Nathaniel Pool
Nathaniel Pool

I say no one buy the stock and we watch the Chinese panic.

Kat Cheng
Kat Cheng

Rosemary You you're gonna be rich? Come visit me!

Victor Subandhi
Victor Subandhi

The chinese Amazon. Great move, not too bad for a teacher turn entrepreneur.

Clay Laugier
Clay Laugier

Really missing old days of stability......

VentureBeat
VentureBeat

Woops! That's not where it's debuting. Fixed.