Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Alibaba IPO Is Going to be Huge

Companies / Corporate News Mar 31, 2014 - 01:58 PM GMT

By: Money_Morning

Companies

Kyle Anderson writes: There's still no official date set for the Alibaba IPO, but that hasn't stopped analysts and investors from speculating about the size of the company's initial public offering.

Alibaba IPOAccording to some analysts, the Alibaba IPO could raise almost as much as Facebook Inc.'s (Nasdaq: FB) 2012IPO, which raised $16 billion.


Facebook was valued at $104 billion when it made its public debut on May 17, 2012. At the time, that was the highest valuation of any American IPO.

By all accounts, Alibaba will smash that figure.

A Reuters report in February polled eight analysts who estimated that Alibaba could reach a valuation of $140 billion.

This week, the London-based, spread-betting firm "Gray Market" set the over/under line on Alibaba's valuation at an incredible $255 billion. That value was considered high, and the firm brought the line down. Currently the line is hovering between $235 billion and $245 billion.

Admittedly, Alibaba is unlikely to meet a valuation figure in the mid-$200 billion range. However, there's reason to believe the valuation total will climb past the estimated $140 billion...

Alibaba IPO: Why The Valuation Is Climbing

When news first broke about a potential U.S. IPO for Alibaba, analysts had valued the company near $100 billion, putting it right in line with Facebook's IPO. That figure started rising almost immediately.

Alibaba spent much of the past year adding new companies to its portfolio, diversifying its capabilities, and expanding its reach.

In the last year, the company has added an e-commerce site in the United States, a 60% stake in one of China's largest television media companies, and partial stakes in web browsers and social media sites. The company has bought at least a portion of 11 different companies and spent more than $2 billion in the past 12 months.

Before the acquisition surge, Alibaba operated a network of e-commerce websites in China that operated like Amazon.com (Nasdaq: AMZN), eBay Inc. (Nasdaq: EBAY), and PayPal. Now, it's making strides to be more than just an e-commerce company.

Additionally, these financial reports have pushed the valuation even higher...

In the first nine months of 2013, Alibaba's revenue was up 51% from the previous year to $1.78 billion. Net profit was up nearly 45% from 2012, at $792 million.

The burgeoning nature of China's e-commerce industry doesn't hurt either. According to the research firm McKinsey & Co., e-commerce in China is expected to be a $420 billion industry by 2020, up from $210 billion in 2012. As the largest e-commerce firm in China, no one is set to cash in as much as Alibaba.

And investors are a step closer to getting a piece of this lucrative market...

Alibaba IPO: Company and Banks Begin Prep Work

On Tuesday, Alibaba held a "kick off" meeting in Hong Kong with its lead underwriting banks to formulate a plan for the highly anticipated initial public offering.

The company did not make any formal announcement about the meeting. Presumably company officials and representatives from the underwriting firms began working out financial details of the IPO, including how much money will be raised, the company's value, the share price range, and the IPO date, among other details.

According to Reuters, Alibaba has discussed using Citigroup Inc. (NYSE: C), Credit Suisse Group AG (NYSE: CS), Deutsche Bank AG (NYSE: DB), Goldman Sachs Group Inc. (NYSE: GS), JPMorgan Chase & Co. (NYSE: JPM), and Morgan Stanley (NYSE: MS) as lead underwriters on the deal.

While investors wait for more information from company officials, new estimates about the IPO have been coming in almost every week.

A Wall Street Journal report last week cited sources close to Alibaba who estimated that the IPO could raise up to $15 million. That would put it just behind Facebook for fifth-largest U.S. IPO ever, in terms of money raised.

That's why Alibaba is the most exciting IPO of 2014.

"With Alibaba, investors will be getting a stock that offers a broad play on the world's most populous economy and a mushrooming web sector," Money Morning's Defense & Tech Specialist Michael Robinson said.

Are you interested in investing in the Alibaba IPO? Give us your thoughts on the company on Twitter @moneymorning using #Alibaba.

When it comes to Federal Reserve statements, there is a huge economic indicator that everyone misses...

Source : http://moneymorning.com/2014/03/27/alibaba-ipo-chinese-firms-value-will-easily-beat-record-high/

Money Morning/The Money Map Report

©2014 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules