(Adds details on ownership, details on Yahoo)
SAN FRANCISCO May 6 Alibaba Holdings Inc
IPO-ALIB.N gave investors a closer look at the scale and
growth of the Chinese e-commerce juggernaut in an IPO prospectus
filed Tuesday in the first step of what could become the largest
technology debut in history.
Alibaba, which powers four-fifths of all online commerce
conducted in the world's second-largest economy, is expected to
raise upward of $15 billion and potentially surpass the $16
billion that Facebook Inc managed in 2012. It will become
the largest Chinese corporation to have sought a home on U.S.
The company handled more than 1.5 trillion yuan, or about
$248 billion, of transactions for 231 million active users
across its three main Chinese online marketplaces in 2013, more
than Amazon and eBay combined.
"If it is able to transport that kind of power to outside
China, it has the potential to become a true global ecommerce
powerhouse," said Roger Entner, Lead Analyst and Founder of
Recon Analytics. "Everybody thought Amazon could do it but now
we have to rethink Amazon in the light of being the most
successful company in that field in the U.S. -- but not in the
Unlike many of the more prominent U.S. technology IPOs of
recent years, Alibaba's list of significant shareholders is
short. By contrast, Facebook and Twitter each broke out
shareholdings from more than a half dozen individual principal
Former English schoolteacher and co-founder Jack Ma now owns
8.9 percent of Alibaba. Yahoo Inc and Softbank
own 22.6 percent and 34.4 percent of the company, which said on
Tuesday it is still deciding between the New York stock exchange
and the Nasdaq as a listing venue.
Yahoo must sell roughly 40 percent of its Alibaba stake in
the IPO or sell the shares back to Alibaba directly prior to the
Yahoo and Softbank may be among the biggest beneficiaries
of Alibaba's IPO, but neither will exercise much control of the
Chinese company despite their shareholdings.
Under an agreement struck with those two major shareholders,
Yahoo Chief Development Officer Jacqueline Reses will resign
from the board upon the listing, while Softbank will have the
right to nominate just one director to a new, 9-member board.
Alibaba's IPO has spurred levels of excitement in Silicon
Valley and Wall Street circles unseen since Facebook Inc's
record-breaking $16 billion coming-out party.
It will debut in a stock market where high-flying stocks
like Twitter's and Amazon's have in past weeks
been brought back to earth, in a selloff that has polarized Wall
Street even as it revives doubts about soaring tech-sector
The proposed IPO size in Tuesday's filing is an estimate for
the purpose of calculating exchange registration fees. Analysts
expect the company to eventually raise an amount surpassing
Facebook's, garnering a market value of more than $160 billion.
Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan,
Morgan Stanley and Citigroup will underwrite the IPO.
(Reporting by Gerry Shih, Alexei Oreskovic, Sarah McBride,
Deepa Seetharaman and Nicola Leske; Editing by Alden Bentley and