News broke early this week that Chinese e-commerce giant
Alibaba plans an IPO on the New York Stock Exchange.
Despite being the talk of Wall Street this week, Alibaba is
just one of three major
that is coming to America during 2014.
We wrote about the Alibaba IPO a couple days ago,
offering up five key facts about what could be the
went public back in May 2012.
Here is some key information about each of these major Chinese
IPOs coming to the U.S.
Alibaba is easily the largest of 2014's major Chinese IPOs.
The company is an e-commerce giant with operations in
business-to-business web services, online retail and payment
services for consumers, cloud computing and more. With $150
billion in merchandise sold last year, Alibaba's various
businesses account for 80% of Chinese e-commerce, more business
than that of
The IPO will likely have ripple effects elsewhere in the
owns 24% of Alibaba, so a successful IPO could significantly
boost Yahoo's value. It would also give Yahoo an opportunity to
sell some of its stake, filling its cash reserves and opening up
the possibility of Yahoo completing a huge acquisition.
Alibaba's IPO is going to be huge, approaching and possibly
surpassing the $16 billion raised by Facebook, the third-largest
IPO in history.
Weibo is a popular Chinese microblogging site, almost a hybrid
of Facebook and Twitter. The site is used by more than 30% of
Chinese internet users and has 129 million active monthly
accounts. Weibo is 77% owned by
Sina Corp (
and another 19% of the company is owned by Alibaba.
The initial IPO filing suggests that Weibo will try to raise
$500 million. Interestingly, the filing included a 56-page
disclosure about the operating risks associated with Chinese
government censorship. Because Weibo's business is information
and data, and that data is clearly being manipulated and censored
to comply with Chinese laws, the IPO will likely scare some
Still, Weibo's IPO is expected to be one of the most followed
IPOs of 2014.
JD.com is the second largest e-commerce marketplace in China,
behind only Alibaba, its direct rival. The company registered its
initial IPO paperwork with the SEC in January so JD.com's IPO
could be right around the corner.
JD.com processed 211.7 million orders and earned revenues of
$8 billion in the first nine months of 2013, an increase of 70%.
Though it's unclear how much capital JD.com will try to raise in
its IPO, estimates suggest the company could be valued between
$10 and $13 billion.
Though JD.com is considerably smaller than Alibaba, it is
still gaining market share where Alibaba actually lost market
share last year for the first time. The IPO will surely draw huge
attention from Wall Street and Main Street alike.
The Bottom Line
Weibo, Alibaba and JD.com are just three of the many Chinese
internet companies seeking to raise capital in the U.S. markets,
though they are three of the most important internet companies in
It is still too early to tell how worthy these companies are
of your investment, though a clearer picture of the companies'
financials will emerge soon. One thing is for sure, however.
These three companies are going to dominate the
for months to come.
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