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China's Alibaba picks NYSE for US IPO, under ticker symbol 'BABA'

China's Alibaba plans to list its shares on the New York Stock Exchange, under the ticker symbol "BABA," dealing a blow to rival Nasdaq.

Yahoo shares ticked higher following the announcement. (Click here to see how Yahoo is trading.)

Softbank president Masayoshi Son.
Yoshikazu Tsuno | AFP | Getty Images
Softbank president Masayoshi Son.

The Chinese e-commerce giant filed a nominal $1 billion initial public offering in early May, though the ultimate offering is expected to much higher.

"We participated in a comprehensive and deliberate exchange selection process and we are pleased to welcome Alibaba Group to the New York Stock Exchange where they will join our network of the world's best companies and leading brands," the exchange said in a statement.

Alibaba listed revenue of $5.66 billion and net income of $2.85 billion for the nine months ended December 31, in a filing than ran to more than 330 pages. It also had a sizable cash hoard of $7.88 billion as of the end of last year.

Read MoreFive things to know about Alibaba

Recent estimates have valued Alibaba between $150 billion to $200 billion. That suggests the planned IPO could raise up to $15 billion, making it one of the biggest Internet IPOs since Facebook's listing in 2012.

Alibaba operates in the world's largest Internet market—China. With 24,000 employees, more people work for the company thanYahoo and Facebook combined.

Yahoo owns 22.6 percent of Alibaba, according to the IPO filing. Its shares were flat in after-hours trading following the news. At a $150 billion valuation, Yahoo's stake in Alibaba would be worth nearly $34 billion, compared to Yahoo's total market capitalization of $36.7 billion.

Alibaba.com is part of the Alibaba Group, founded in 1999 by Jack Ma, a former English teacher from Hangzhou, China. Alibaba.com first became profitable in 2002. Alibaba Group's other platforms include Taobao, Tmall and Alipay. The latter is an online and mobile payment platform.

--By CNBC.com. Reuters contributed to this report.

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