This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

China's Alibaba Files for U.S. Listing

NEW YORK (The Deal) -- Hong Kong e-commerce group Alibaba Group Holdings filed its long-awaited initial public offering registration statement on Tuesday, May 6, announcing plans to raise $1 billion. Alibaba said it will list American depository shares on the New York Stock Exchange or the Nasdaq Global Market.

From retail shopping sites such as Taobao Marketplace, Tmall and Juhuasuan, and wholesale operations including and, Alibaba had sales of $6.5 billion in revenue in the first nine months of its most recent fiscal year. The company had about $5.6 billion in the prior year.

Co-founder and executive chairman Jack Ma has 8.9% of the equity, while executive vice chairman Joseph Tsai has a 3.6% position.

The largest holders are SoftBank and Yahoo! (YHOO), with 34.4% and 22.6% of the equity, respectively.

Ma co-founded Alibaba in 1999. Softbank led a $20 million investment round in 2000, and provided additional financing. Yahoo took a stake in 2005.

Following the IPO, SoftBank will continue to own more than 30% of the stock.

Alibaba can mandate that Yahoo sell 208 million shares in coordination through the IPO.

Excitement about Alibaba's IPO has driven up the share price of the Sunnyvale, Calif., search and Internet media group.

Yahoo shares closed at $36.49 on Tuesday, down 42 cents or 1.1%, then trended up in after-hours trading. In late April, UBS estimated that the Alibaba holdings account for $26.32 of Yahoo's price per share. In the same report, UBS estimated Alibaba's valuation at $115 billion at the time of the IPO and projected that its valuation could rise to $165 billion following the offering.

Alibaba's underwriters are Credit Suisse AG, Deutsche Bank AG, Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. and Citigroup Global Markets Inc.

Leiming Chen, Daniel Fertig, and William Hinman of Simpson Thacher & Bartlett LLP provided counsel to Alibaba, while Sullivan & Cromwell LLP lawyers William Chua, Jay Clayton, and Sarah Payne advised the underwriters.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs