Chinese e-commerce and e-payment giant Alibaba is to launch what could be the biggest IPO ever on the US stock market.
Alibaba owns Alipay, reckoned to account for around half of China’s online payments and has payment partnerships with MasterCard, Sina Weibo and Octopus, among others.
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In a statement on 16 March the company said: "Alibaba Group has decided to commence the process of an initial public offering in the United States.
"This will make us a more global company and enhance the company’s transparency, as well as allow the company to continue to pursue our long-term vision and ideals.
"Should circumstances permit in the future, we will be constructive toward extending our public status in the China capital market in order to share our growth with the people of China."
Analysts have estimated that proceeds from the IPO could reach as much as $15bn and value the company at between $150bn and $200bn.
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By GlobalDataAlibaba is currently in talks with Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs Group, JP Morgan, and Morgan Stanley for lead underwriting roles during the floatation.
The announcement ended months of speculation over whether the company would float on the US or Hong Kong stock exchange.
Alibaba said: "We wish to thank those in Hong Kong who have supported Alibaba Group.
"We respect the viewpoints and policies of Hong Kong and will continue to pay close attention to and support the process of innovation and development of Hong Kong."
Both Alibaba and rival company Tencent’s payment operations were impacted last week by a demand from the central bank that they halt virtual credit card payments and payments made by scanning QR codes with smartphones.
The People’s Bank of China put a stop to the payments on 14 March, just days after both companies had announced the launch of virtual credit cards backed by CITIC Bank.
Related articles:
China suspends mobile payments using QR codes: Reports
