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Alibaba Seeks to Raise Up to $21.1 Billion in U.S. IPO

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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.

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.

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Ingentia Energies Appoints New MD

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Indigenous oil and gas company, Ingentia Energies Limited, has appointed a former Shell executive, Engr Victor Agbaroji, as its new Managing Director/Chief Executive Officer.

It was gathered that Agbaroji assumed office on 1 September 2026, following the completion of the tenure of the company’s interim managing director, Engr Charles Odita, who led the firm between March and August 2026.

The company disclosed this in a statement on Tuesday, after a leadership transition ceremony held in Lagos.

READ ALSO: Dangote Credits Tinubu’s Economic Reforms with Driving Nigeria’s Economic Recovery

Speaking during the event, Odita said his six-month tenure was productive and expressed confidence in Agbaroji’s ability to accelerate the company’s growth.

“It is my privilege today to hand over the affairs of Ingentia Energies Limited to the incoming managing director, Engr Victor Agbaroji. The company has achieved a lot within the last six months; it is our desire that the new Managing Director will take us to the next level, and I am confident that as an industry veteran, he would hit the ground running and accelerate the company’s growth trajectory,” Odita stated.

In his acceptance remarks, Agbaroji said he would consolidate the gains made under the outgoing management while focusing on safety, talent development, innovation and cost competitiveness.

“Our immediate focus is to consolidate and sustain the gains we have made. Ingentia Energies has set the pace among its peers in growing the company since the acquisition of its licence, and we intend to maintain that momentum, holding in high esteem our company’s greatest assets – people – and taking into recognition the importance of safety, talent development, innovation and cost-competitiveness. IEL will ensure that our people work safely and return home to their loved ones every day. At the same time, we will continue to develop talents, improve efficiency, embrace innovative ways of creating value, and deliver strong returns to our shareholders and stakeholders while affirming our commitment to supporting Nigeria’s energy aspirations, including the national target of increasing crude oil production to 3 million barrels per day,” the new MD said.

According to the statement, Agbaroji brings more than 31 years of experience across the oil and gas value chain to the new position.

He began his professional career as a well-test engineer, gaining experience across several fields before moving to Shell as a reservoir engineer.

During his career at Shell, he held various positions covering operations engineering, corporate petroleum engineering, corporate planning and economics.

The company said he contributed to portfolio optimisation initiatives that supported the emergence of Nigeria’s indigenous marginal field operators.

Agbaroji also served as front-end development manager for major gas projects, including gas supply initiatives for fertiliser production.

At the global level, he was global operations manager for reserves reporting across the Shell Group, overseeing activities spanning Asia, Europe, Australia and North America.

He subsequently moved into Nigeria’s independent oil sector, where he brought international industry practices into indigenous operations.

Before joining Ingentia Energies, Agbaroji led technical advisory, risk management and project delivery support services for emerging energy companies.

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Dangote Credits Tinubu’s Economic Reforms with Driving Nigeria’s Economic Recovery

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President and Chief Executive of Dangote Industries Limited (DIL), Aliko Dangote, has commended the Federal Government for implementing bold and transformative economic reforms repositioning Nigeria for sustainable growth, strengthening investor confidence, and accelerating the country’s economic recovery.

According to Dangote, the ongoing fiscal, monetary, and regulatory reforms have contributed significantly to improving macroeconomic stability, enhancing productivity across key sectors, increasing Nigeria’s attractiveness as an investment destination, and fostering a more resilient business environment. He noted that the positive outcomes emerging from the reform agenda underscore the importance of consistent, market-driven policies in advancing national development and economic prosperity.

“The economic reforms being implemented by the Federal Government are beginning to yield tangible results. We are witnessing improved economic activity, stronger investor confidence, increased industrial productivity, and a more resilient business environment. These measures are laying a solid foundation for sustainable economic growth and long-term prosperity for Nigeria,” Dangote stated

READ ALSO: US-Iran Conflict Sees Oil Exceed $94

He explained that the reforms have created a more enabling operating environment for businesses, particularly large-scale manufacturing and industrial enterprises that are critical to economic diversification, job creation, foreign exchange generation, and national competitiveness. He added that government initiatives aimed at improving efficiency, promoting investment, enhancing transparency, and supporting domestic production are providing a solid framework for industrial expansion.

“We commend the Federal Government for its courage and determination in implementing reforms that are essential for economic transformation. While every reform process comes with initial challenges, the benefits are increasingly evident in stronger economic indicators, improved business confidence, and renewed investor interest in Nigeria,” he said.

Dangote further observed that the government’s favourable policy environment has supported the continued growth and efficient operation of the Dangote Petroleum Refinery and Petrochemicals complex, Africa’s largest integrated refining and petrochemical facility. He noted that policy measures designed to strengthen local refining capacity, reduce import dependence, improve energy security, and encourage value addition have contributed meaningfully to the refinery’s success and Nigeria’s broader economic development objectives.

“The progress being recorded at the Dangote Petroleum Refinery and Petrochemicals complex is closely linked to a policy environment that encourages investment, supports domestic industrialisation, and promotes self-sufficiency. These reforms are helping Nigerian businesses to plan with greater certainty, invest with confidence, and compete effectively on the global stage,” he added.

He stated that the refinery’s increasing production capacity and expanding export footprint are contributing significantly to Nigeria’s economic resurgence by generating foreign exchange earnings, creating employment opportunities, strengthening local supply chains, and positioning the country as a leading energy and manufacturing hub

Reaffirming the Group’s commitment to supporting the Federal Government’s economic agenda, Dangote said Dangote Industries Limited would continue to invest in strategic sectors, drive innovation, promote industrial development, and create sustainable employment opportunities.

“Our vision has always been to support Nigeria’s economic development through transformative investments. Today, we are witnessing how the combination of private-sector commitment and decisive government policies can unlock unprecedented opportunities for national growth. The refinery, petrochemical operations, fertiliser production, and our other industrial investments are helping to build a more self-reliant, competitive, and prosperous economy,” he said.

He expressed confidence that sustained reforms, policy consistency, and stronger collaboration between the public and private sectors would further stimulate economic growth, attract increased foreign direct investment, and reinforce Nigeria’s position as one of Africa’s most attractive investment destinations.

“Nigeria is on the path to becoming one of the world’s leading industrial and economic powers. With continued policy consistency, robust private-sector participation, and investment-led growth, the future of our economy is exceptionally bright,” Dangote concluded.

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Group Credits PINL with Safeguarding Environment, Farms

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A group has given kudos to the Pipeline Infrastructure Nigeria Limited (PINL) for effective pipeline surveillance and community interventions during the recent flooding in parts of the Niger Delta.

The Niger Delta Progressive Alliance (NDPA) in a statement signed by its Convener, Nse Victor Udoh, noted that the PINL’s operational efficiency and sustained maintenance of pipeline corridors helped prevent additional environmental damage, preserve farmlands and protect aquatic ecosystems from threats associated with pipeline failures and oil spills.

According to the NDPA, annual flooding in the Niger Delta poses serious environmental risks, particularly when floodwaters come into contact with damaged pipelines, oil spills and illegal activities around oil and gas infrastructure.

The organisation noted that the recent flood season was different, as there were no reported cases of widespread oil contamination of floodwaters, dead fish or the spread of oil into farms and residential areas attributable to pipeline failures.

READ ALSO: DPRP Decries Rising Fuel Imports, Despite Strong Local Supply Capacity

It said the development underscored the importance of preventive pipeline management, stressing that effective infrastructure protection was often measured by disasters that were prevented rather than emergencies that attracted public attention.

According to the group, regular patrols, monitoring and right-of-way surveillance enabled PINL to identify and address potential threats before they escalated into major incidents.

It added that inspection, maintenance and repair activities had also contributed to maintaining the integrity of critical pipelines, especially during periods of heavy rainfall and flooding.

The NDPA further commended PINL for its interventions in flood-affected communities in Rivers, Bayelsa and Imo States.

It cited the company’s restoration efforts in areas previously affected by illegal refining, as well as empowerment programmes targeting women and youths in host communities.

Udoh said the initiatives showed that corporate social responsibility should go beyond occasional charitable gestures and become part of a sustained commitment to community welfare and development.

“We commend Pipeline Infrastructure Nigeria Limited, therefore, on two counts that this season has made inseparable: the efficiency of its service, tested by a flood and found equal to it, and the seriousness of its social responsibility,” he said.

He added that the group had observed that farms remained protected and waterways retained their ecological value despite the flooding.

“This season, our farms still stand where the water reached them. Our creeks still hold their life,” Udoh said.

The alliance maintained that infrastructure security and community welfare were closely linked in the Niger Delta, where pipelines pass through several communities and environmentally sensitive areas.

It urged PINL to sustain the standard, stressing that protection of critical national infrastructure, environmental preservation and improved host-community welfare should remain mutually reinforcing objectives.

The NDPA described PINL’s performance during the flood season as an example of how operational efficiency and responsible community engagement could combine to protect energy infrastructure and the environment.

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