Yahoo! Inc. (YHOO): Alibaba Chooses Barclays PLC As Lead Underwriter


The impending initial public offering of Yahoo! Inc. (NASDAQ:YHOO)-connected Alibaba Group will see Barclays PLC (ADR) (NYSE:BCS) as its primary underwriter, a report from CNBC has revealed.

According to CNBC’s Dominic Chu, sources familiar with the matter have revealed that the Alibaba Group has indeed chosen Barclays PLC (ADR) (NYSE:BCS) as their market-maker.

Furthermore, Chu noted that the Alibaba Group will be listed on the New York Stock Exchange and will trade under the ticker symbol BABA.

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Yahoo! Inc. (NASDAQ:YHOO) owns 22.5% or about 524 million shares of the Alibaba Group as revealed in page 228 of the U.S. company’s F-1 Filing to the Securities and Exchange Commission. The internet giant is said to be selling 6% of Alibaba Group shares in the initial public offering.

According to reports, Yahoo! Inc. (NASDAQ:YHOO) intends to use a lot of the money they will get from the sale of its shares in the Alibaba Group to give back to shareholders. In a report last July, Bloomberg said that Yahoo! Inc. will be giving back at least half of the proceeds it will net from the Alibaba Group initial public offering to shareholders.

Meanwhile, according to Kayla Tausche of CNBC, what is interesting with the initial public offering of the Yahoo! Inc. (NASDAQ:YHOO)-linked Alibaba Group is that it seems to be trying to recreate the success of the listing of Twitter Inc (NYSE:TWTR) on the New York Stock Exchange. She noted that Twitter Inc. also tapped Barclays PLC to be their lead underwriter during their initial public offering.

Yahoo! Inc. (NASDAQ:YHOO) shareholders includes John Thaler’s Jat Capital Management which reported about 8.85 million shares in the company by the end of the second quarter of the year.

Disclosure: None

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