After the Alibaba Group listing on September 19, it seems they have to sell additional shares of the company. This makes a firm Alibaba being China's biggest e-commerce in history. Alibaba began trading on the New York Stock Exchange on Friday, September 19. In a short time, movement of its shares jumped by about 38 percent to close at USD 93.89 per share. It is a fantastic value and recorded as an initial public offering (IPO), the largest in the United States (USA).
Alibaba Group not only recorded history as the largest IPO in the United States. This e-commerce company from China also surpassed the total value of IPOs of three big American companies. With the IPO price of USD 68 per share, Alibaba reap funding of USD 21,8 billion. This amount is greater than the total IPO achieved by Google, Facebook and Twitter are valued only at USD 19,8 billion. Based on the IPO share price, the market capitalization Alibaba reach USD 167,6 billion. Only a few companies those are higher than, such as the Apple IBM, Oracle and Facebook.
The underwriters involved in the IPO of Alibaba also come to feel a very large profit. The underwriters managed to enjoy the benefits of up to Rp3.6 trillion. Parties become Alibaba IPO underwriters are Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Citigroup. Even Bloomberg on Tuesday (9/23/2014) noted the advantages of the underwriters are the largest IPO in the history of Wall Street.
 |
| image source: straitstime.com |
In a Reuters report quoting CNBC, the bankers of Alibaba even have done the Green Shoe. They buy an additional 48 million shares of the company to cover their shares sold to meet investor demand. Green Shoe Option aims to slow the decline or increase in the price of the IPO shares within a specified period to increase the regular market for these shares. Usually this is done related to the selling or buying pressure caused by short-term investors.
Alibaba and the shareholders sell 320.1 million American Depositary Shares (ADS) in its bid. However, according to the IPO prospectus, the underwriters have the option to sell additional shares of Alibaba, Yahoo Inc. and Alibaba founder Jack Ma and Tsai Joe to meet investor demand is high.
The success of the initial public offering (IPO) made Alibab Group Founder and Chairman of Alibaba, Jack Ma, the richest man in China. With the stock price immediately rose at the beginning of the sale first, Jack Ma wealth immediately rocketed more than USD16 billion. This immediately leads Jack Ma became the richest man in China, as quoted by Forbes.
The success of e-commerce giant China proves that the e-commerce industry is a rapidly grow. E-commerce can be considered as an industry with huge potential to increase the velocity of money and international trade.
0 comments:
Post a Comment