HONG KONG: Chinese e-commerce giant Alibaba Group Holding Ltd has decided to hold its long-awaited IPO in the US and is in discussions with six banks to underwrite the deal, in what is set to the most high-profile public offering since Facebook Inc's listing nearly two years ago.
Analysts estimate the Hangzhou, China-based company has a value of at least US$140bil, and the IPO proceeds could exceed US$15bil, Reuters previously reported. The deal would be a huge coup for the six banks, as it would yield an estimated US$260mil in underwriting fees, assuming 1.75% commission, and catapult them in league table rankings.