Alibaba plans IPO for after Labor Day

The Chinese e-commerce giant had wanted to have shares trading by mid-August, but that proved too ambitious.

By MSN Money Partner Jul 17, 2014 11:50AM
Caption: The logo of Alibaba Group in China
Credit: © Ju Huanzong/Rez FeaturesBy Telis Demos, The Wall Street Journal

Alibaba Group Holding Ltd. is now planning to launch its initial public offering after the U.S. Labor Day holiday on Sept. 1, according to a person familiar with the company.


The Chinese e-commerce giant has been working on a potentially $20 billion initial public offering for this summer, and it had been planning to launch the deal as soon as the end of this month.


The decision to delay the deal was made because the company couldn't be certain it would complete its pre-IPO work this month, the person familiar with the move said. 


The goal had been to complete the IPO and have the shares trading by mid-August, before the IPO market slows.


The company also wanted to launch the deal as soon as possible, to minimize risk that markets would turn, people familiar with its thinking have said.


Though Alibaba has attracted global investor interest, the process of placing more than $20 billion worth of shares, and ensuring that they have a modest first-day pop, isn't an easy one, and many outside events -- such as violence in the Middle East, or a sudden U.S. market plunge -- could easily make the deal far more difficult. The launch work involves people on three continents, including at seven investment banks and five outside law firms.


The company is planning on a robust "roadshow" of face-to-face meetings with investors to pitch the deal, with visits in Asia, North America and Europe, people familiar with its plans have said. The company has wanted to ensure that top decision makers at investment firms would participate in the process and not be absent due to summer vacations, they said.


The company is also still in discussions with the Securities and Exchange Commission over finalizing its IPO paperwork, people familiar with the matter said.


The six banks selling the company's shares are Credit Suisse Group (CS), Deutsche Bank AG, Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS) and Citigroup (C). Rothschild is also advising the company and working with the banks.


Tags: CCSGSJPM
5Comments
Jul 17, 2014 12:32PM
Jul 17, 2014 12:32PM
avatar
The Chinese can't compete without cheating. 
Jul 17, 2014 2:07PM
Jul 17, 2014 1:23PM
avatar

V_L.....WTF..?? 

What the hell do you know about IPOs...?

What do you really know about China or Chinese internet and search engines...??

And what do you know about Alibaba and Jack Ma....??

Jul 17, 2014 12:31PM
avatar
A fitting scenario... roll out the ultimate job-killing entity after Labor Day and crush every small business in the world by monopolizing commerce. Alibaba has already contacted businesses who can be bought for a fractional percentage of a perceived not validated margin. Anything goes when your country blows from being the largest sweat shop producer of crap goods in Man's history. Who invested in this? Let's get those names, addresses and phone numbers publicly posted. When it collapses the world, let's find those people and haul their azzes in for overdue justice. If it's ONLY about profit, let US profit from your demise. Losers.  
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123
123 rated 1
262
262 rated 2
480
480 rated 3
651
651 rated 4
649
649 rated 5
629
629 rated 6
616
616 rated 7
496
496 rated 8
346
346 rated 9
111
111 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
EXCEXELON CORPORATION9
TAT&T Inc9
VZVERIZON COMMUNICATIONS8
CTLCENTURYLINK Inc8
AAPLAPPLE Inc10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.