Thursday, Jul 31, 2014Thursday, Jul 31, 2014
News
 

Temasek set to reap $3-billion windfall from Alibaba IPO

Published on Sep 27, 2013 8:01 AM
 
Temasek Holdings logo at the office at The Atrium@Orchard. (Taken on 21st June 2013). Temasek Holdings looks set for a windfall from its stake in Chinese online retail giant Alibaba, which is said to be planning a mega initial public offering (IPO) in the United States. -- ST FILE PHOTO: KUA CHEE SIONG

Temasek Holdings looks set for a windfall from its stake in Chinese online retail giant Alibaba, which is said to be planning a mega initial public offering (IPO) in the United States.

The Singapore investment firm and three other partners took a stake worth US$1.6 billion in Alibaba in 2011, which valued the company at US$32 billion.

Today, Alibaba is estimated to be worth more than US$75 billion (S$94 billion), which means the value of Temasek's investment has doubled over two years. Some analysts have even put Alibaba's value at up to US$120 billion, according to reports by news agency Reuters.

Even if Temasek does not sell its stake as part of the IPO, it will be sitting on a major paper gain.

 
If you are not a subscriber, you can get instant, unlimited access here