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Thread: Alibaba

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    Default Alibaba

    Alibaba shatters record for largest IPO offering in history - See more at: http://business.asiaone.com/news/ali....CU2ytvJN.dpuf

    AFP
    Saturday, Sep 20, 2014
    NEW YORK - A buying frenzy sent Alibaba shares sharply higher Friday as the Chinese online giant made its historic Wall Street trading debut.

    Alibaba leapt from an offering price of US$68 (S$86.13) to US$92.07 in the first trades, then headed to nearly US$100 before settling back at the close to US$93.89, a hefty gain of 38 per cent.

    Company founder Jack Ma was on the floor of the New York Stock Exchange before trading opened, while a group of Alibaba customers rang the opening bell.

    By raising US$25.02 billion, Chinese online giant Alibaba broke the record for the largest initial public offering in history, after investment underwriters exercised the option for 48 million extra shares, bringing the total to 368 million.

    The previous record was set in 2010 by China's AgBank, which raised US$22.1 billion.

    Speaking to CNBC television from the trading floor, Ma said he was "very honoured, and so excited" by the market debut and that he sees enormous growth potential for Alibaba.

    "We have a dream," he said. "We hope in the next 15 years the world will change. We want to be bigger than Wal-Mart."

    He added that he sees Alibaba as a company that will have a huge impact: "We hope people say in 15 (years) this is a company like Microsoft, like IBM."

    With the surge in its share price, Alibaba's market value jumped to more than US$220 billion - making it bigger than Facebook (US$199 billion) and Amazon (US$151 billion).

    The rise also lifted Ma's personal net worth to some US$17 billion, making him the richest person in China, according to Forbes magazine.

    Upbeat analysts

    Some analysts were also upbeat about Alibaba, which dominates the Chinese online retail space with Taobao.com and TMall.com.

    "Alibaba has become the biggest e-commerce firm in the world in terms of gross merchandise volume," the research firm Trefis said.

    "Alibaba will continue to retain the mammoth share of online shoppers, even if it is not able to increase it much."



    Youssef Squali at Cantor Fitzgerald recommended buying Alibaba.

    Alibaba presents an "opportunity to invest in China's largest e-commerce platform, which we believe has the potential to dominate global online commerce over time," the analyst said in a note to clients ahead of trading.

    "While the stock's not cheap, we believe the company's outsized growth and margin profiles, if sustained, should support higher valuation over time."

    The IPO allows investors to get a piece of the huge Chinese market, but it also will fuel Alibaba's international ambitions.

    Alibaba's consumer services are similar to a mix of those offered by US Internet titans eBay, PayPal and Amazon, and it also operates services for wholesalers.

    The company earlier this year announced plans for a US marketplace called 11 Main, which is currently in a test phase.

    Ma told Bloomberg television Friday he has more plans for the US market.

    "We already started helping a lot of small business in the US," he said.

    "And still we sell American cherries and we're selling a lot of seafood. And we want to sell more things."

    Asked if he would consider a partnership with Amazon, Ma said, "I would be interested in talking (with) anybody... involving helping small business."

    Alibaba Group made a profit of nearly US$2 billion on revenue of US$2.5 billion in the quarter ending June 30.

    Alibaba decided to list in New York because it wanted an alternative class share structure to give selected minority shareholders extra control over the board; the Hong Kong bourse declined to change its rules to allow this.

    A US government panel has warned of risks to investors because of a complex corporate structure. Alibaba is registered in the Cayman Islands and controlled by a partnership through a series of shell companies.

    The IPO is also a major event for US-based Yahoo, which bought a 40 per cent stake in the Chinese online giant in 2005 for US$1 billion and still holds 22.4 per cent.

    The California company is reaping close to US$10 billion by paring that stake down to 16.3 per cent.

    But Yahoo shares were lower, amid indications that investors would cash out of the US Internet firm to invest directly in Alibaba. Yahoo closed down 2.7 per cent at $40.93.

    - See more at: http://business.asiaone.com/news/ali....k9P7cPoE.dpuf

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    Last edited by Arcachon; 20-09-14 at 13:51.

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    Alibaba Group Holding Ltd. ADS

    Market cap $231.44B at Sep 19, 2014, 7:59 p.m.

    http://www.marketwatch.com/investing/stock/baba

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    Alibaba Group Holding Ltd. ADS

    Market cap $231.44B at Sep 19, 2014, 7:59 p.m.

    http://www.marketwatch.com/investing/stock/baba

    With the surge in its share price, Alibaba's market value jumped to more than US$220 billion - making it bigger than Facebook (US$199 billion) and Amazon (US$151 billion).

    Question - what is the value before IPO?

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    The vice chairman, Joe Tsai, a Yale graduate in law has been paid US$600 p.a. when he joined alibaba in 1999 and resigned from his last job in the US with a salary of US$700k p.a. paycheck. He could see the potential of alibaba and realize his dream after 15years. All the other 7 cofounders are all multi millionaires now with Ma and joe as billionaires.

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    SoftBank estimates $5.8b gain from Alibaba listing

    Reuters
    Sunday, Sep 21, 2014
    TOKYO - Japan's SoftBank Corp said it expected a gain of about 500 billion yen (S$5.8 billion) from Alibaba Group Holding's share listing in New York, where the Chinese e-commerce leader surged 38 per cent on its first day of trade.

    SoftBank CEO Masayoshi Son also told CNBC that he would want to own more of Alibaba, although he reiterated that the Japanese mobile carrier and Internet media company was happy with the current 32 per cent stake, which made it the Chinese company's biggest shareholder.

    Asked if he would like more of Alibaba, Son told CNBC on Friday: "Of course." Pressed on the likelihood of buying more shares, Son added:"Anything is possible but we are happy the way it is."

    He said SoftBank considered Alibaba a core holding and he was upbeat about the Chinese company's future. "My point of view is that this is the true beginning of Alibaba," he said. "I'm very, very optimistic."

    SoftBank said in a statement on Saturday that it would book the estimated 500 billion yen gain in the half-year to end-September and would announce a precise figure at a later time.

    The gain was recorded to reflect Alibaba's increased asset value with the issuance of new shares and the conversion of preference shares to common stock in conjunction with the listing.

    The Chinese e-commerce leader's shares surged in their Friday debut on the New York Stock Exchange as investors jumped at what is likely to rank as the largest IPO in history, betting on Chinese growth and a company that accounts for 80 per cent of that country's online sales.

    - See more at: http://business.asiaone.com/news/sof....tcubnJXg.dpuf


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