Alibaba keen not to repeat Facebook's error in any IPO
The online retail operator wants to make sure any IPO is at a price that will not immediately crash by half, as Facebook's did, a source says
Alibaba Group does not want to be the next Facebook, at least for its prospective initial public offering.
The world's biggest online retailer was considering a more conservative valuation than the one the social networking company achieved last year, a person familiar with the situation said.
While Alibaba, based in Hangzhou, Zhejiang province, has said it has no timetable for an initial share sale, analysts are expecting an offering this year or next.
Proceeds from the offering would be used, along with additional cash, to buy back stock held by Yahoo, the source said.
Alibaba, which has made Jack Ma Yun a billionaire since he founded the company in 1999, is already in the early stages of a Facebook-like speculative fever over its valuation.
Alibaba, which has made Jack Ma Yun a billionaire since he founded the company in 1999, is already in the early stages of a Facebook-like speculative fever over its valuation
With revenue projected to increase by nearly two-thirds this year, echoing estimates for Facebook at the time of its float, some analysts have said Alibaba could be valued at as much as US$100 billion, close to the US$104 billion Facebook fetched in its offering.