2014-02-22 07:24:50 - CEO Peter Tasca of Laureate BVI states, "Alibaba Group posted a 51% increase in revenues for Q3 to US$1.78 billion, we expect to see an IPO launched in the 2nd or 3rd quarter of this year following JD.com’s IPO.”
Laureate BVI has estimated Alibaba Group Holdings Ltd.’s IPO to have a valuation of US$180 billion after the Chinese e-commerce company reported surging sales.
Laureate reports that Alibaba expects to have 3 IPOs, each one will have an independent value of of $35 billion. The 3 IPOs will be independent companies, an e-commerce similar to Amazon, Alibaba Financial excluding Alipay and a cloud services company.
Peter Tasca, CEO of Laureate Trust states, “We project Alibaba will structure each one of these companies to have a qualified IPO because Yahoo has a Put option to sell 10% of their Alibaba stake at the IPO price and it expires at the end of 2015.”
A qualified IPO is one that is worth at least $35
billion at the IPO price.
According to Tasca, “We expect Alibaba will be listed in the USA because Alibaba Founder Jack Ma wants to retain control of his company. Hong Kong will not work for Mr. Ma because the Hang Sang exchange only offers one class of stock while the USA allows dual classes of stock. This is a strategy employed by Founders of Facebook (FB) and Google (GOOG) to maintain control of their companies.”
A single class stock would allow outsiders to elect board members, this has occurred with Yahoo (YHOO) and Dell.
As China’s largest e-commerce company, Alibaba accounts for 50% of online sales in China, and is involved with 70% if the country’s package deliveries, according to Founder Jack Ma.
Tasca states, “We would like to see Alipay come to market. In 2013, Alipay racked up US$148 billion compared to Ebay’s (EBAY) Paypal who generated only US$27 billion. As you can see, Alipay could be a major online payment platform worldwide.”
According to McKinsey & Co., China is the second largest e-commerce market with projected growth of $420 billion by 2020.
iResearch reported that China probably became the largest online retail market in 2013.
Laureate points out Alibaba has spent US$2 billion acquiring assets to improve the operations of their e-commerce company. Since this company only has until the end of 2015 to IPO and it has already spent US$2 billion in cash, we predict the first IPO will arrive by 2nd quarter this year.
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