Jack Ma’s Open Sesame For The Wide World

IT IS EASY to overdo the symbolism in the fact that the biggest tech company listed on a U.S. exchange will soon be Chinese. Jack Ma’s e-commerce giant, Alibaba, is expected to to be valued at at least $163 billion after its forthcoming initial public offering on the New York Stock Exchange, eclipsing the $100 billion valuation Facebook achieved with its IPO.

If the share sale raises the expected $21.1 billion, and that would be a conservative sum given some of the hype that has preceded the newly filed prospectus, Alibaba’s would set an new high-water mark for a technology IPO, and be the third largest IPO from any sector. If pre-sale demand for its American Depositary Shares proves to be exceptionally strong, the offering might be repriced so that it topped the record $22.1 billion that Agricultural Bank of China raised in July 2010. Final pricing is expected during the week of Sept. 15th.

For now, the company’s business is China-centric, and is being touted to foreign investors as a way to tap China’s economic rebalancing with the expectation that e-commerce will take an increasingly larger slice of a growing pie of consumer consumption, though prospective investors should note that rivals such as Baidu, Tencent and JD have growing aspirations to loosen Alibaba’s grip on the wallets of the country’s growing middle class. But in a letter to investors, Ma made plain his global ambition. “In the past decade, we measured ourselves by how much we changed China. In the future, we will be judged by how much progress we bring to the world.” It is then that the symbolism will take on more substance.

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