Global Investor

In the big league

Anand Kalyanaraman | Updated on November 19, 2014


The mop-up from IPOs has been on the rise

Going by the buzz, Chinese e-commerce giant Alibaba’s impending initial public offer (IPO) in the US could raise between $15 billion to $20 billion.

This will place the offer among the world’s largest. The pole position is currently held by insurance giant AIA Group, which raised a little more than $20 billion on the Hong Kong Stock Exchange in 2010.

Following closely is Visa Inc, whose $19.6 billion 2007 IPO makes it the largest to have taken place so far in the US.

Cross $16 billion and Alibaba’s offering will be the largest-ever among internet companies, racing past Facebook, which made heads turn by garnering that amount on the NASDAQ in 2012. When it comes to giant IPOs, banks, insurance and financial services companies take the cake with four of the top 10 IPOs in this category. Three telecom companies also figure among the top 10.

The Alibaba issue will bolster the China connection in the IPO league tables; at present, there are two Chinese names (three if AIA’s Hong Kong listing is included) in the top 10 IPOs.

After listing, the Alibaba stock will have to deliver on the bourses to keep up with Facebook, Google and Twitter. The annual return on these stocks since their IPOs has been nearly 20 per cent and more. India’s biggest IPO till date, Coal India, raised $3.4 billion in 2010 – this did not make it to the top 100 list.

Published on May 11, 2014

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