Alibaba gears up for IPO

Chinese Internet giant, Alibaba, is preparing to file the paperwork for its much awaited initial public offering on the New York Stock

Exchange sometime this week, according to WWD.

Insiders believe that Alibaba will raise over 15 billion dollars in the offering, which would make it one of the largest tech IPOs ever witnessed on Wall Street and values the company at over 200 billion dollars.

The Chinese company is said to be listing in New York, rather than Hong Kong, because US law allows current controlling shareholders to maintain control of the company after its IPO via a separate class of shares that hold larger voting rights than the shares being floated.

This would mean that Jack Ma, who founded the company 15 years ago, and other executives would still control the company, as Chinese laws do not allow such share structures.

A successful IPO would give the Internet giant billions of dollars in cash, as well as in stock, to help the company control more of its home retail market and expand into new countries, such as the US, as Alibaba's profile in the West continues to grow.