SHANGHAI, July 10 China's e-commerce giant
Alibaba Group Holding Ltd's will use proceeds from
its potential IPO to fund acquisitions, media reported on
Wednesday, as the firm looks to broaden its mobile services.
The group will not include most of its financial businesses,
such as the Alipay online payment platform and its micro-loan
services, in the potential IPO, Chief Executive Officer Jonathan
Lu was quoted as saying in the China Daily.
Alibaba has not officially announced that it will hold an
IPO, but people familiar with the matter say the company has
intensified its meetings with investment banks over the past few
The issue is expected to value Alibaba at $60-$100 billion,
and could raise $15 billion, making it one of the world's
biggest internet IPOs and a much sought-after prize for bankers
and stock exchanges.
Lu, who succeeded founder Jack Ma in May, said the timing of
Alibaba's listing would depend on whether he had a good
Alibaba paid $294 million to buy a 28 percent stake in
Chinese digital mapping company AutoNavi in May. It also
invested $586 million to buy an 18 percent stake in Sina Corp's
Most of Alibaba's revenue comes from its e-commerce
platforms such as Taobao and only its profitable businesses will
be sold in the IPO, the paper said.
The group posted a 171.1 percent jump in net profit in the
fourth quarter as its revenue rose 84 percent to $642.2 million,
according to a regulatory filing by major shareholder Yahoo Inc
Alibaba last year split Taobao into three units: Taobao
Mall, Taobao Marketplace and eTao. The first two units had total
transaction value of about 1 trillion yuan ($163.15 billion)