The Alibaba Group is expected to have its IPO in between mid to late September, but the company is yet to declare the terms and the price of the IPO. Investors are keenly waiting for the price at which Alibaba Groups sets its IPO, especially Yahoo! Inc. (NASDAQ:YHOO)’s shareholders, owing to the 25% stake that Yahoo! Inc. (NASDAQ:YHOO) holds in the Alibaba Group. There are expectations on the Street that the Alibaba Group IPO is going to be one of the largest, if not the largest, IPO in history of capital markets. Bob Pisani discussed the expectations from the IPO on CNBC, recently.
“We are waiting for the terms, we don’t have it. We did get an update; we got an F-1/A, which is an update this morning. The revenues did show up for the second quarter, they were up 46%, that’s nice, but where is the price? Where is the size? We don’t have terms yet for the IPO. Everybody is expecting the IPO to be happening in by September 15th or September 22nd. If that is going to happen, we need to get the terms, we need to have the terms within the next week […],” Pisani said
Pisani mentioned that the Alibaba Group is expected to have roadshow by next week or latest by the week of September 8. He remarked that if the Alibaba Group’s IPO is going to happen by mid-September, the company needs to at least declare the price the IPO is supposed to happen. If the Alibaba Group’s IPO makes it a $200 billion company as the Street is expecting, Yahoo! Inc. (NASDAQ:YHOO)’s stake in Alibaba Group would be worth as much as $50 Billion, much more than the current market cap of Yahoo! Inc. (NASDAQ:YHOO).
As of June 30, 2014, Ken Griffin’s Citadel Investment Group owns more than 8.1 million shares in Yahoo! Inc. (NASDAQ:YHOO).