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The Alibaba IPO Is Officially Filed: Here’s What We Know

This is a syndicated repost published with the permission of Money Morning. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

Alibaba IPOThe Alibaba IPO has officially been filed as the company released the prospectus this afternoon (Tuesday), for what is expected to be one of the largest U.S. IPOs of all time.

Now that the Alibaba IPO has officially been filed, here’s what we know about the upcoming deal…

  • In the document, the company reported that revenue for the nine months ending March 31, 2013, was $6.5 billion, which was a 57% increase from the previous year. During the same time frame, net income was reported as $2.9 billion, which was a 305% increase year over year.
  • Alibaba reported that 84% of its revenue comes from its Chinese e-commerce business. Its sites Taobao and Tmall are the most popular of its network of e-commerce sites. International commerce accounts for 12% of the firm’s top line. Cloud computing and Internet infrastructure bring in 1.9% of the company’s revenue.

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  • Interestingly, the value of the IPO has been set at $1 billion. That number will almost certainly go up as the IPO date approaches, considering most estimates place the IPO in the $15 billion to $20 billion range.
  • The underwriters on the deal include: Credit Suisse Group (NYSE ADR: CS), Deutsche Bank AG (NYSE: DB), Goldman Sachs Group (NYSE: GS), JPMorgan Securities (NYSE: JPM), Morgan Stanley (NYSE: MS), and Citigroup Inc. (NYSE: C).
  • Alibaba had nearly 21,000 employees at the end of 2013. Of that total, more than 7,300 employees were either engineers or data analysts.
  • Concerning ownership, Softbank Corp. owns 34% of the company, while Yahoo! Inc. (Nasdaq: YHOO) owns 24%, Jack Ma owns 8.9%, and Joseph Tsai owns 3.6%.

Here’s everything investors need to know now that the Alibaba IPO has officially been filed…

Will you be investing in the Alibaba IPO? Join the conversation on Twitter @moneymorning using #Alibaba

The post The Alibaba IPO Is Officially Filed: Here’s What We Know appeared first on Money Morning – Only the News You Can Profit From.

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