Alibaba Group Holding Ltd, the Hangzhou-based e-commerce business giant will be listed on NYSE, under the ticker BABA, when the company goes public later this summer.
Alibaba was founded in 1999 by Jack Ma, former English and International Trade teacher who became the first Chinese entrepreneur to appear on the cover of Forbes magazine. The company recorded revenue of 7.5 billion in 2013, and as far as product choices go, Alibaba is bigger than eBay (NASDAQ: EBAY) and Amazon (NASDAQ: AMZN) combined. The value of Alibaba is currently estimated to be around $150 billion, which means it could potentially be one of the biggest and most expensive IPOs of all time. The anticipated IPO is expected to arrive in late July and early August.
A little about Alibaba Group’s business model. There are several e-commerce websites under the Alibaba Group, each with a different style and aimed to different target audiences. The biggest are alibaba.com, Taobao Marketplace and Tmall.
The initial website, alibaba.com, is focusing on business to business trades for small businesses and is the largest site in the world dedicated for that purpose. The website is in English, giving small business from around the globe the option to participate.
Taobao Marketplace, on the other hand, is focusing on consumer to consumer transactions with some attractive features for people new to e-commerce operations. Those interested selling on Taobao don’t need to pay any commission to the company. Instead, Alibaba’s revenue comes from advertisements posted by sellers to promote their products, allowing individual entrepreneurs to build their own business online.
Tmall is where large companies come into the picture, in this business-to-consumer online retail. Many popular companies already have personalized pages on Tmall including Adidas, Dell, Nokia (NYSE: NOK), Philips (NYSE: PHG), Samsung, Logitech (NASDAQ: LOGI), Apple (NASDAQ: AAPL) and many more.
The company is growing aggressively outside its own monstrous e-commerce system, and recently entered the television industry. Alibaba acquired 18.5% stake in Youku Tudou, a company broadcasting several popular television programs. Alibaba also will purchase a stake in ChinaVision Media Group for $804 million. ChinaVision Media Group will provide Alibaba with possible future opportunities in the mass media industry.
It seems more and more internet based companies choose to be listed on the NYSE over the NASDAQ index. NASDAQ, which is known as home to high-tech companies like Google (NASDAQ: GOOG), Apple and others, was usually an obvious choice for an e-commerce. After, what some claim to be a failure managing the Facebook (NASDAQ: FB) IPO in 2012, causing loses and misunderstanding among investors, NASDAQ will have to impress soon to prove its consistent reliability. The NYSE may attract more high-tech based companies if the Alibaba IPO is launched successfully