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Friday, April 18, 2014

Alibaba Appoints Rothschild's Eve IPO

Alibaba Group Holding of China has appointed Rothschild Group as financial advisor to corporations ahead of the initial public offering (IPO) in the United States (U.S.). This information is conveyed by a number of sources, on Wednesday.

The appointment of Rothschild apply IPO before the Chinese e-commerce giant in the U.S. that could potentially raise $ 15 billion fund. Alibaba choose the U.S. compared to Hong Kong after a plan to get partners-including founder Jack Ma and a number of senior executive-nominate a majority of directors rejected.

Alibaba plans to file a listing at the end of April.

Rothschild has been involved in many a deal worth in Asia. For example, the company became a financial advisor Hong Kong tycoon Cheng Yu-tung, when the company he controlled in part, China Huishan Dairy Holdings is engaged in the dairy industry, raising $ 1.3 billion in an IPO in Hong Kong last September.

Michael Yo, a former Rothschild banker in Hong Kong, is the director of corporate finance Alibaba. He is responsible for the IPO of Alibaba.

In general, the financial advisors provide advice to companies in the IPO process and will take actions that benefit management. Usually, they will not engage in the sale of shares to institutional investors.

So far, Alibaba has requested the help of six financial companies that none came from China to sell shares. Here are the companies: Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc.., JP Morgan Chase & Co.., Morgan Stanley, and Citigroup Inc..

Jack Ma still lives in a modest apartment in the city of Hangzhou, China, Alibaba.com at starting in 1999. Along with the increasingly growing businesses, executives and employees often gather crouch around his home while hoping for the next great business idea inspiration.

Big words are now not enough to describe Alibaba Group Holding.

Taobao, the pages be imagined from Ma's apartment a decade ago now has 800 million products from seven million sellers membayara advertising and other services to the alibaba. In 2013, the combined transaction volume of managed shopping site Taobao and Alibaba another named Tmall reach $ 240 billion, according to a source who knows.

The acquisition of two-fold greater than Amazon.com, three times bigger than eBay, and one-third greater than the overall transaction value of two e-commerce giants the United States last year.

With these results, Alibaba approaching another major milestone: the initial public offering (IPO) in the United States that are likely to raise a fund of $ 15 billion from investors. The projection is thinner than the sale of Facebook when deciding to go public in 2012.

Increasingly high enthusiasm when Yahoo reportedly reap greater acceptance and earnings in the fourth quarter Alibaba. Yahoo uncover acceptance rate because it has a lot of stake in the Chinese company. Acceptance Alibaba rocketed by 66% from the previous year to reach $ 3.06 billion. Meanwhile, the amount of increased profit nearly doubled to touch the figure of $ 1.35 billion.

With the acquisition, Alibaba performance anxiety will be slowing in the third quarter has been ignored. However, still there are those who worry about the size of the company's operations will be difficult for innovation, especially mobile e-commerce.

The total volume of transactions on Taobao and Tmall in 2013 far surpassed the achievement of Amazon and eBay.
However, recent results indicate the potential value of the company exceeds $ 150 billion, said Bernstein Research analyst Carlos Kirjner.

Alibaba is expected to submit its IPO prospectus to the regulator no later than the end of April, said analysts and potential investors. Sale of shares held in the summer of possibility this year. The event will be an important point for the Chinese technology industry and consumer sectors are booming.

If the IPO goes as expected, Ma, 49 years old, it is likely worth about $ 10 billion. The charismatic leader to step down as chief executive of Alibaba last year. However, he still holds the post of president of the company and be a driving force that is often described as a combination of Amazon, eBay, and Google. Ma refused an interview invitation.WSJ

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