NEW YORK (TheStreet) -- Shares of Yahoo Inc. (YHOO) are climbing higher by 1.74% to $40.28 in pre-market trading on Monday, as the tech stock gets a boost from the announcement that the privately held China-based e-commerce business, Alibaba will sell 320 million shares priced between $60 and $66 per share, CNBC.com reports.
Yahoo owns a 22.4% stake in the Alibaba, and will retain a 16.3% stake after the company goes public on the New York Stock Exchange, Bloomberg reports.
Alibaba is planning to sell almost 320.1 million American Depositary Shares, worth more than $21 billion, making this the largest IPO in U.S. history, CNBC.com added.
The pricing for Alibaba's offering will be on Sept. 18 and the stock will open Sept. 19, according to Barron's.
Separately, TheStreet Ratings team rates YAHOO INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate YAHOO INC (YHOO) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."