Rumor: China’s Alibaba IPO Valuation Might Be USD 100 Billion
Recently, there are many speculations that how much valuation Alibaba Group will reach after listing on the market. According to the Wall Street Journal report that Alibaba previous B2B CEO Wei Zhe, who recently attended luncheon meeting in Hong Kong, said that taking the profits into consideration, it is not too much if it’s worth $ 100 billion valuation.
As per the regulatory filing presented by Yahoo, one of Alibaba shareholders that the net profit of the company in the fourth quarter of 2012 is 6.4217 billion U.S. dollars. And the company’s annual net profit will reach billions of dollars in 2013, which provides strong support for the $ 100 billion valuation. As to Wei Zhe , Alibaba is an excellent company, if it wants, it can list at any time.
? In contrast, some analysts are not so optimistic, they generally give Alibaba 60 billion to 70 billion U.S. dollars of valuation, although some claimed that the company’s valuation will reach $ 100 billion by 2014.
As to the issue regarding where Alibaba will publicly list, Wei Zhe believes that Hong Kong has ample liquidity, and it gives Alibaba more chances to reach lots of international investors. However, the U.S. market should understand technology businesses better.