Alibaba IPO timing bodes well for Casino's Cnova listing

martes 16 de septiembre de 2014 15:14 GYT

By Marcela Ayres and Guillermo Parra-Bernal

SAO PAULO, Sept 16 (Reuters) - The frenzy around Alibaba Group Holding Inc's initial public offering this week is giving a boost to Casino Guichard Perrachon & Cie's plans to list its e-commerce unit in the United States by January, bankers and analysts said.

The Alibaba deal, which could fetch more than $22 billion, should add firepower to the listing of Cnova, Casino's platform with over $4 billion in annual sales in France, Brazil, Colombia, Thailand and Vietnam, just as major rivals expand their global reach. Alibaba's IPO is expected to price on Sept. 18.

The Cnova IPO is expected to happen between December and January, two sources with direct knowledge of the plan said. Analysts expect Cnova's IPO to benefit from the earlier listings of Alibaba and Chinese rival Inc in May.

The decision to list Cnova on the Nasdaq will lure the world's best technology investment firms into the trade, the first source said. The timing of Alibaba's listing "couldn't be better" for the Cnova transaction, the source added.

"This will naturally bring about a recycling of money. People will make money with the Alibaba IPO, then cash out some of the gains and buy into another case," the second source said. "Many people are active because of Alibaba deal - it's an anchor that will help lure more people" into trades like Cnova.

Both sources declined to be identified because of regulatory restrictions related to the IPO plan.

Zia Wigder, head of research of consultancy firm Forrester, said the Alibaba IPO poses no threat to other e-commerce IPOs, especially in countries where the Chinese giant is not dominant.