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