U.S. Web giant Yahoo will subscribe for 10% of the shares to be sold by China's largest e-commerce company, Alibaba.com, according to a term sheet, in an initial public offering that is expected to raise roughly $1 billion.
The company plans to sell 858.9 million shares, or 17% of its enlarged share capital, in a Hong Kong listing.
Of the shares to be sold, 75% are earmarked for global investors, 15% for Hong Kong retail investors, and 10% for Yahoo .
In 2005, Alibaba absorbed Yahoo's China business, and Yahoo bought a 40% stake in Alibaba for US$1 billion. The China consumer business will not be included in the IPO, sources have said.