China’s e-commerce behemoth Alibaba has filed an initial public offering document to the U.S. Securities and Exchange Commission. According to SEC information and well-informed sources, the IPO plans to raise one billion U.S. dollars.
After negotiations with the Hong Kong Stock Exchange failed, the company announced that it would hold its IPO on an American exchange, with the NASDAQ and New York Stock Exchange as the two principal competitors.
Alibaba has long been a mainstay in China where it already accounts for about 80 percent of all online shopping by individual consumers. According to the market research firm, iResearch, that will translate to roughly $394 billion this year.
In an internal communication to employees, Alibaba founder and chairman Ma Yun said, “Becoming a listed company has never been our goal. It is a tactic and a means to realize our mission.”
In the announcement, Ma noted that listing in the United States will expose Alibaba to challenges in global financial markets. “Not all companies have the opportunity to face such global challenges. We are honored to be one of them,” Ma said.
Many analysts predicted that the size and scale of the Alibaba offering would dwarf previous blockbuster IPO’s like Facebook. When the company lands on U.S. shores, Alibaba will be the largest Chinese enterprise to list on a U.S. exchange.