By now you know that Alibaba is big. Like, third biggest internet company in the world big. With the champagne bottles emptied following its historic IPO, expectations are high that Alibaba will move quickly and forcefully into a phase of global expansion . But what does that mean for startups in Southeast Asia? Alibaba is no stranger to investing. According to The Wall Street Journal , Alibaba has been atypically active in 2014, joining in funding rounds totalling over US$1 billion.
The technology world has been abuzz with news of Alibaba’s record-setting IPO last Friday. The IPO showcased the potential of China’s tech magnates, but investors knew it would not be the last blockbuster IPO of 2014. Line, the messaging app with 490 million registered users and an ecommerce arm of its own, was expecting to go public as well. Having built up an empire of cute, the company had prepared public filings in both Japan and America. Line never revealed if it intended to do a double filing or ultimately pick one country over the other.
The ringing of the morning bell of NYSE on 19th September by Aibaba Group Holding Ltd. (NYSE:BABA), the Chinese e-commerce giant marked the launch of biggest Initial Public Offering (IPO) in US history. The company raised $21.8 billion on the first day of its trade increasing its market capital value to $231 billion and putting it among the top 20 biggest companies by market cap in the US. Alibaba far beat out its tech peers like Facebook Inc. (NASDAQ:FB) whose first day earning was $16 billion and Google Inc. (NASDAQ:GOOGL) whose 2004 IPO launch just raised $1.67 billion.
Media have been opining and hyping Alibaba’s USD21.8 billion IPO impact on the global Internet ecosystem and how the company plans to invest its new wealth. Unlike most IPOs, many early investors in Alibaba will have no lock-up period and they can sell their shares today. Though CEO Jack Ma pledged that customers are more important than investors to Alibaba’s growth, this uncommon nod towards investors may instead be a bellwether to how insiders view Alibaba’s future.
NEW YORK: The Dow on Friday (Sep 19) notched its third straight record high in mixed Wall Street trade as shares of Chinese Internet company Alibaba soared following a record initial public offering. The Dow Jones Industrial Average advanced 13.75 points (0.08 per cent) to close at 17,279.74. The S&P 500 finished down 0.96 of a point (0.05 per cent) at 2,010.40, narrowly missing a record high a day after setting one. The tech-rich Nasdaq Composite Index fell 13.64 (0.30 per cent) to 4,579.79.
15 years after first starting up, China’s top ecommerce company, Alibaba (NYSE:BABA), today listed on the New York Stock Exchange in a huge, record-breaking IPO. After earlier pegging its shares at $68 a piece, Alibaba actually debuted – just over two hours after markets opened – at $92.70 per share. The shares nearly hit $100 in the opening few minutes before settling down to $94 at the time of publishing.
With trading starting on the New York Stock Exchange later on Friday, the share sale will raise $21.8bn, making it one of the largest flotations ever. It values Alibaba, which accounts for 80% of all online retail sales in China, at $167.6bn. That value surpasses such corporate titans as Walt Disney and Boeing. The final amount raised from the sale could change, depending on the final allotment allocation.
Alibaba will be the third-biggest internet company in the world by market cap if analysts’ estimates hold up. It will surpass both US ecommerce giant Amazon and Chinese rival Tencent. Chinese companies take up four of the top 10 spots and make up three of the top six. Baidu (NASDAQ:BIDU) sits at number six, while JD (NASDAQ:JD) rounds out the top 10. Google (NASDAQ:GOOGL) leads by a long shot with nearly twice the market cap as runner up Facebook (NASDAQ:FB).
In the run-up to Alibaba’s earth-shaking IPO, the ecommerce titan has been all but silent during its customary “quiet period.” But 2014 as a whole has been a busy year for the firm. Alibaba has invested in or bought outright multiple companies both at home and abroad, spending so much money that some have referred to 2014 thus far as Alibaba’s “bachelor party.”
Alibaba Group Holding Ltd. plans to stop taking orders early from investors for its highly-anticipated initial public offering, according to media reports on Friday, citing people familiar with knowledge of the matter. The Chinese e-commerce giant reportedly has sufficient demand to sell all the stock in the IPO at the high end of its current price range and therefore, plans to start closing the order books early.
The videos, which have been online for several days at Retail Roadshow , describe the company’s numerous shopping platforms and how each of them has impacted the lives of ordinary Chinese consumers. Despite the heartstring-plucking soundtrack and rosy tone, the clips nevertheless provide an excellent overview the company’s products and how it influences China’s retail infrastructure. If you’re hazy on the nuances behind Alibaba’s business model or numerous services, it’s well worth viewing.
Alibaba Group Holding has set the price range of its initial public stock offering $60 to $66 a share and hopes to raise a record-shattering $24.3 billion in what would be the biggest IPO ever. At $66 a share, the Chinese Internet behemoth would be valued at about $163 billion. “It was very close to what I expected,” said Francis Gaskins, director of research for Equities.com in Marina del Rey. “At that price range, it’ll do very well.”
By pricing Alibaba `s widely-anticipated initial public offering (IPO) below market expectations, CEO Jack Ma is seeking to avoid a repetition of internet peer Facebook`s disaster debut, say analysts. “Jack Ma is very astute and he noticed that Facebook tripped over its initial public offering and doesn`t want to do the same thing, so better to low ball it a bit and let it rise as it goes into the market than let the public investors feel like they have been short changed and had paid too much,” Roger Kay, president at Endpoint Technologies told CNBC on Monday.
Alibaba has revealed the long-awaited numbers on its upcoming IPO – and it’s going to huge. Alibaba’s newly updated SEC filing shows that the Chinese ecommerce titan aims to raise over US$20 billion once it finally lists. Alibaba is going to sell 320.11 million American Depositary Shares, which it has pegged at a range of $60 to $66 per share. At the maximum price, Alibaba would raise $21.13 billion.
EIJING–Foreign nationals who want to buy Alibaba Group shares in the Chinese e-commerce giant’s U.S. public offering will need to get comfortable with an unusual business structure. Alibaba’s online and mobile commerce businesses will be controlled by a “variable interest entity,” an arrangement meant to allow investors to buy into Internet and other businesses in which Beijing bans or limits foreign ownership.
At this point, it looks like the IPO roadshow featuring Alibaba founder Jack Ma will begin on Sept. 3. The company’s seven investment banks and five outside law firms expect the song-and-dance routine for institutional investors to start in Asia, then head to Europe, and end up playing to packed investor houses all across United States. Alibaba IPOThen, the company should debut on the New York Stock Exchange in mid-September.
When Japanese messaging app Line reveals its quarterly revenues, we know what to expect – growth, growth, growth. The quarter ending in June 2014 is no exception, as today the company revealed revenues for the app hit JPY 18.2 billion (about US$177 million), up 25 percent from the previous quarter and 146 percent year-on-year. As usual, the company hasn’t provided details regarding profits or losses, so there’s no telling how the growth may or may not compensate for the ad dollars the company is throwing in markets all over the world.
SEOUL: Line Corp, a Japan-based social messaging service firm, has filed for an initial public offering in the United States, Bloomberg News reported on Friday, citing unidentified sources. Line’s parent company, South Korea’s Naver Corp, said on Wednesday that Line had filed for an initial public offering in Tokyo. Banking sources with direct knowledge of the matter told Reuters on Wednesday that the listing will ultimately be either a dual US-Japan listing or a listing only in the United States.
Both Reuters and the Wall Street Journal say this afternoon say they have it on good authority that messaging app Line is set to file for a huge IPO with the Tokyo Stock Exchange (TSX). No other details are available. This is contrary to the words of NHN CFO Hwang In-joon last year when he said that the firm was considering listing Line in the US in order to boost its global standing.