Alibaba’s Public Listing to be Biggest Since Facebook
In a rare sale of a stake in Alibaba Group Holdings that valued China’s dominant e-commerce business for around US$128 billion as Alibaba is expected to go public by the end of the year. The move to go public is said to be the biggest listing since Facebook debut in 2012 and the possible value of the company in its initial public offering is said to be the key focus for investors that is keen on cashing in China’s booming online market.
Giant Interactive Group a Chinese video game company also plans to sell its stake in Alibaba to Tiger Global fund for and estimated US$199 million but no further details was given. In 2011 Giant bought a US$50 million stake in Alibaba through Yunfeng Capital a private equity firm that is based in China that is also co-founded by Jack Ma, Alibaba’s executive chairman. During this time the company was already valued at US$32 billion after a private equity consortium that was led by Yunfeng Capital, DST Global and Silver Lake bought 5 percent stake each for roughly US$ 1.6 billion.
If Giant Interactive stake haven’t changed since 2011, it is said to be worth around four times its original amount and Alibaba’s value correspondingly increase to US$128 billion as well. Although the IPO suffered delays as Alibaba struggled to reached an agreement with Hong Kong regulators in a partnership structure and is hoping to use it as part of the IPO.