Business
Alibaba Seeks to Raise Up to $21.1 Billion in U.S. IPO
LAGOS-Alibaba Group Holding Ltd., the e-commerce company whose fortunes surged along with China’s economy, plans a historic U.S. initial public offering that may also claim the global record.
Alibaba is seeking a valuation of as much as $162.7 billion, larger than 95 percent of the Standard & Poor’s 500 Index, as it enters the IPO’s final stages. At the high end of the proposed price range, Alibaba would be the third most valuable Internet company traded in the U.S. after Google Inc. and Facebook Inc. The offering could raise as much as $21.1 billion, according to a Sept. 5 regulatory filing.
Even at the high end, the valuation falls below more optimistic estimates of Alibaba’s worth — analysts surveyed in July put its value at $187 billion, on average. That will give China’s largest e-commerce company room to raise the IPO price as it builds demand during meetings with fund managers, said Henry Guo, an analyst at JG Capital.
“This is below Wall Street’s expectations,” said Guo, who is based in San Francisco. “They prefer a smoother start so that they can push up the prices.”
Alibaba may temper its valuation, some analysts said in July, which could help it avoid the listing flop of Facebook. Those analysts forecast that Alibaba would value itself at about $154 billion, after applying a discount.
Facebook had a price tag of $104 billion at the time of its IPO in May 2012 and went on to lose half its market value as investors worried about slowing growth and the company’s mobile strategy. The stock has since recovered.
Leadership, Structure
While Alibaba’s IPO is coming amid growth in China’s e-commerce market, investors now must weigh the risks of buying shares in the Hangzhou-based company. The Internet behemoth, whose marketplaces are comparable to those of EBay Inc. (EBAY) and Amazon.com Inc., has a governance arrangement that keeps insiders in control as well as an ownership structure that could face objections from the Chinese government.
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Alibaba and selling stockholders — including Yahoo! Inc. (YHOO), which owns more than 22 percent of the company, Chairman Jack Ma and Vice Chairman Joe Tsai — plan to sell 320.1 million American depositary shares for $60 to $66 apiece, the filing shows. Those shares are equivalent to a 13 percent stake. The stock will be listed on the New York Stock Exchange under the symbol BABA.
“We believe one thing, today is difficult, tomorrow is more difficult, but the day after tomorrow is beautiful,” Ma said in the company’s presentation. “So we have to work very hard in order to survive the long journey.”
Tsai is selling 4.25 million shares, meaning he could make $280 million if the shares were priced at the top-end. Ma will sell 12.75 million shares, earning as much as $841 million.
Visa, AgBank
Alibaba’s sale could exceed Visa Inc.’s $19.7 billion IPO in 2008, the biggest U.S. initial offering to date. Including an overallotment option, Alibaba could raise as much as $24.3 billion, surpassing the existing global record held by Agricultural Bank of China, which raised $22.1 billion in sales in both Hong Kong and Shanghai in 2010.
“This is their initial discussion of pricing, and then as the roadshow goes on and bankers build the books, they’ll have an idea about the interest level,” Eric Jackson, founder of Ironfire Capital LLC, said in a phone interview from Toronto.
The roadshow will begin tomorrow in New York, people with knowledge of the matter have said. After that, executives will travel to Boston and Baltimore, before heading west to San Francisco, the people said. The executives will then meet with investors in London and Hong Kong. Alibaba is scheduled to price its IPO on Sept. 18, according to data compiled by Bloomberg. The shares would start trading the next day.
Relative Value
Compared with other Internet companies, Alibaba is asking for a price that would make it expensive. At the high end of the IPO range, the company would debut at about 17 times sales in the year through June, well over the multiple of 1.96 times at Amazon and 3.92 times at EBay. Chinese Internet companies Tencent Holdings Ltd. and Baidu Inc. trade at 13.53 times and 12.24 times.
The valuation itself won’t stop investors who are drawn to Alibaba’s potential, Jackson said.
“In this environment, people want a growth story. People are willing to pay up for growth and Alibaba still has a lot of growth.”
Alibaba provides various marketplaces for buyers and sellers as well as services that help them conduct their businesses. Taobao Marketplace, started in 2003, enables millions of individuals and small businesses to sell products. Tmall.com provides a virtual shopping mall, with retailers and brands offering products, and Juhuasuan operates a flash-sales model. The three sites accounted for 82 percent of Alibaba’s sales in the year through March.
China E-Commerce
Mainland Internet users have grown to 632 million and could exceed 850 million by 2015, according to government data. Alibaba has been seen as a proxy for this growth with its 279 million active buyers in the year through June, according to its prospectus.
Alibaba “should be attractive to investors because of how exciting the Internet opportunities in China are and because that opportunity itself is not fully discovered,” said Gustavo Galindo, based in New York, who helps oversee more than $10 billion of emerging-market assets at Russell Investments.
Profit in the company’s first quarter surged as advertisers boosted spending on the Tmall and Taobao platforms, filings show. Net income almost tripled to $1.99 billion, or 84 cents a share, in the three months ended June 30, helped by a $1 billion gain on the revaluation of larger stakes acquired in UCWeb Inc. and OneTouch.
Value Swells
Alibaba was valued at just a few billion dollars when Yahoo acquired its stake in 2005, and rose to $32 billion after Silver Lake Management LLC, Temasek Holdings Pte and DST Global bought in six years later.
Yahoo’s valuation is partially pinned on its 22.4 percent stake in Alibaba, as shareholders speculate that the Sunnyvale, California-based company could use the proceeds from the IPO for large acquisitions or investments. In July, the company said it planned to keep a bigger stake in Alibaba post-IPO than it originally projected, and would return at least half of the cash it raises to shareholders.
Yahoo Stake
Yahoo plans to sell 121.7 million shares in the IPO, the filing shows, paring its stake to 16 percent after the offering. At the top of the marketed range, the company would reap more than $8 billion.
Ma will own 7.8 percent after the IPO, while Tsai will hold a 3.2 percent stake. SoftBank Corp., which holds a 34 percent stake in Alibaba, is not planning to sell shares.
Like many Chinese companies, Alibaba will rely on a legal structure known as a variable interest entity, or VIE, required by the Chinese government for foreign ownership of certain industries, including Internet companies.
According to a U.S. congressional commission report, shareholders face “major risks” from investing in companies that use a VIE. While Alibaba gets most of its revenue from wholly foreign-owned enterprises, if China revokes its VIE license, U.S. investors could be affected, filings show.
“They had to be conservative because the world hasn’t completely embraced the China model,” said Jeff Sica, president of Sica Wealth Management LLC in Morristown, New Jersey. “Despite this immense market, there’s still this concern that they exist in this mysterious black hole where shareholder value could evaporate.”
Partnership Structure
Alibaba’s partnership structure also raises some questions. It enables 27 individuals to nominate a majority of the board, which is then voted on by the shareholders — thus giving a select group outsize control of the company. That arrangement was rejected by Hong Kong regulators, so Alibaba chose a listing in the U.S. — where companies with different classes of shares, such as Facebook and Google, are common.
In a July 12 filing, Alibaba gave the partnership additional powers by saying it could appoint more directors without shareholder approval if fewer than a simple majority of the board are partnership nominees.
Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Citigroup Inc. are managing the offering. Simpson Thacher & Bartlett LLP and Sullivan & Cromwell LLP are providing legal advice. Rothschild is serving as the IPO adviser to Alibaba.
BLOOMBERG-
Kenyan President, William Samoei Ruto has described the Dangote Petroleum Refinery and Petrochemicals (DPRP) as “a masterpiece of science, engineering and art”.
He made the declaration following a tour of the world-class facility in Lagos, while reaffirming Kenya’s commitment to partnering with the Dangote Group on the proposed $17 billion East African Oil Refinery and Petrochemical Complex in Lamu.
President Ruto visited the refinery after attending the United Nations General Assembly (UNGA), noted that witnessing firsthand the scale, sophistication and operational excellence of the 700,000 barrels-per-day Dangote Refinery had strengthened his confidence in the East African refinery project.
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“Coming here and seeing it for myself, I can confirm that I have seen a masterpiece of science, engineering, and art. To my brother Aliko, congratulations. I always knew Nigerians to be very brave people and go-getters, but I did not anticipate that it was at this scale,” President Ruto said.
The Kenyan leader disclosed that preparations had been concluded for the ground-breaking ceremony of the East African refinery project in Lamu, which is expected to become a strategic regional asset for East Africa.
According to him, the refinery will drive industrialisation, create jobs, strengthen engineering and technical capacity, enhance energy security and promote regional economic integration.
“This is not a Kenyan refinery; it is going to be a regional refinery. We are positioning our continent as an emerging growth centre, and this project will help accelerate industrialisation, create jobs, enhance engineering capabilities and strengthen Africa’s economic competitiveness,” he stated bureaucratic bottlenecks to ensure efficient project execution.
“The Government of Kenya is 100 percent behind this project. We have secured the required land and are working to ensure that we spend our time building rather than navigating administrative delays,” he said.
The President further commended the leadership and commitment of Dangote Group President and Chief Executive, Aliko Dangote, highlighting his deep understanding of the refinery’s technical and operational processes.
“The detail with which Aliko Dangote understands this plant is remarkable. Unless you understand the details, you are unable to make the right decisions. That commitment to excellence is one of the reasons behind the success of this project,” he added.
Dangote Group’s Chief Strategy Officer, Aliyu Suleiman, disclosed, during the visit that the conglomerate generated approximately $17 billion in revenue during the first half of 2026 and is on course to achieve a record $36 billion in revenue for the full year, representing a 100 per cent increase over the $18 billion recorded in 2025.
“The revenues of the Group have grown significantly over the last five years. From $18 billion last year, we are on track to get to $36 billion this year. Our half-year revenue is already about $17 billion,” Suleiman said.
He attributed the strong performance to sustained investments across key sectors, including cement, sugar, fertiliser, petroleum refining, upstream oil and gas, and other strategic businesses.
Suleiman noted that Dangote Group’s growth ambitions are anchored on its Vision 2030 Strategy, aimed at expanding the company’s industrial footprint across Africa and creating globally competitive businesses on the continent.
“Between 2020 and 2025, the Group executed a capital expenditure programme of approximately $50 billion. Over the next five years, we intend to invest twice that amount as we accelerate our expansion across Africa,” he stated.
Suleiman emphasised that the proposed 700,000 barrels-per-day greenfield refinery and petrochemical complex in Lamu, estimated at approximately $17 billion, will be a cornerstone of the Group’s ambition to build a $100 billion African industrial enterprise.
“The East African refinery in Kenya is going to be a key component of our journey and our dream to get to $100 billion. It is going to be a major contributor,” he said.
He added that Dangote Group’s expansion plans span a broad range of sectors, including port infrastructure, gas infrastructure, LNG, upstream oil and gas, power generation, mining and other strategic industrial investments across Africa.
As part of preparations for the project, Dangote Group has signed a contract worth more than $450 million with Engineers India Limited (EIL) to provide project management consultancy and engineering, procurement and construction management services for the Lamu refinery and petrochemical complex.
The partnership builds on EIL’s experience and involvement in the successful development of the DPRP in Lagos. Once completed, the East African refinery is expected to process 700,000 barrels of crude oil per day, strengthening regional energy security and supporting industrial development across East Africa.
The Dangote Group is also progressing plans to expand the processing capacity of the DPRP in Nigeria from 700,000 barrels per day to approximately 1.4 million barrels per day through the addition of a new 750,000 barrels-per-day crude distillation unit.
The expansion is expected to further solidify Nigeria’s position as a leading exporter of refined petroleum products and enhance Africa’s energy self-sufficiency.
President Ruto’s visit and Dangote Group’s ambitious growth plans highlight the increasing impact of African-led investments in driving the continent’s industrial renaissance.
With record revenue growth, a robust investment pipeline, expansion of refining capacity in Nigeria and the planned development of the East African Oil Refinery in Kenya, Dangote Group is reinforcing its role as a key driver of Africa’s economic transformation, energy security, industrial development and regional integration.
Photo Caption: From Left – Kenya President, Dr. William Samoel Ruto; Group Vice President, Oil & Gas and Fertiliser, Dangote Industries Limited, Devakumar Edwin; and President/CE, Dangote Industries Limited, Aliko Dangote during the Kenya President’s Visit to Dangote Petroleum Refinery, Petrochemicals and Fertiliser Plant Lekki, Lagos on Friday 25th September 2026.
Lagos State Governor, Babajide Sanwo-Olu, has called for stronger international investment partnerships as he pitched Lagos as a strategic gateway for global investment into Africa.
Sanwo-Olu made the call while speaking at the Global Africa Business Initiative’s Unstoppable Africa 2026 in New York, where global business leaders, investors, policymakers and heads of government gathered to discuss ways of strengthening African businesses and expanding the continent’s economies.
The 2026 edition of the event was held on September 20 and 21 at the New York Marriott Marquis, on the sidelines of the opening of the 81st United Nations General Assembly.
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The governor highlighted Lagos’ large population, expanding market, infrastructure needs, entrepreneurial ecosystem and strategic position as key factors that create opportunities for investors seeking to participate in Africa’s economic growth.
Sanwo-Olu stressed that Lagos’ growing global relevance should translate into tangible benefits for residents through investments in infrastructure, transportation, healthcare, enterprise development and other sectors.
He said the state remained open to international capital, strategic partnerships and private-sector participation, with the goal of building partnerships capable of delivering measurable economic value across Lagos.
According to the governor, Lagos is pursuing a development agenda that combines long-term economic growth with efforts to address the everyday needs of its residents while creating an environment where businesses can establish, expand and compete.
A key feature of the governor’s presentation was the promotion of Invest Lagos, the flagship investment promotion initiative of the Lagos State Ministry of Commerce, Cooperatives, Trade and Investment.
The engagement followed the successful Invest Lagos 3.0 summit held in Lagos in June under the theme, “Lagos: The Business Gateway to Africa.”
The summit brought together global investors, policymakers, development institutions and business leaders to explore opportunities in infrastructure, manufacturing, technology, trade, finance and the creative economy.
Sanwo-Olu’s participation at Unstoppable Africa 2026 further provided an international platform for Lagos to showcase its investment opportunities and seek partnerships aimed at attracting global capital to the state.
The Nigerian equities market closed Friday’s trading session on a negative note, with the All-Share Index declining by 0.38 per cent to close at 252,113.41 points.
According to the Nigerian Exchange Group’s Daily Market Snapshot for Friday, September 25, 2026, equity market capitalisation stood at ₦163.65 trillion, representing a 0.01 per cent decline.
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The fixed-income market capitalisation also fell by 0.01 per cent to ₦58.74 trillion, while the market capitalisation of Exchange-Traded Products (ETPs) declined by 2.15 per cent to ₦57.77 billion.
Meanwhile, the top five gainers were led by a stock that rose 10 per cent to close at ₦17.60, followed by CMFC, which gained 9.76 per cent to ₦3.26. Briscoe rose 9.74 per cent to ₦10.70, ABC Transport gained 9.68 per cent to ₦5.10, while Royal Exchange increased by 9.09 per cent to ₦1.08.
The figures were contained in the NGX Daily Market Snapshot released at the close of trading on Friday.
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