The world's largest online retailer is trying to avoid experiencing the issues Facebook had faced with its initial public offer. The firm is seeking a more conservative valuation according to an anonymous source familiar with the situation.
Based in Hangzhou, China, Alibaba has set its own timetable for its IPO and this is expected to be done either this year or in 2013. The proceeds earned from the IPO would be used to buy back stock currently owned by Yahoo.
Alibaba is owned by Jack Ma and was established in 1999. It has made Ma a billionaire and now speculative fever is now taking over the firm's IPO valuation. It is projecting revenues to increase by 59% and with analysts being valued as high as US$100 billion, which is around the Facebook offer at the same stage.
Reasonably, Alibaba's valuation may be about US$62.5 billion, which is the average estimated by different banks and research firms since last February.
According to Alibaba spokesperson John Spelich, Ma, the company's executive chairman, said that the company may go public within five years and no valuation as to the listing was disclosed.
In a related development, Jonathan Lu would be replacing Ma as CEO by the end of May.
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