Name: Yizhou Fang A13070682 Subject: Markets 6010-003 September 19, 2014 was a memorable day in Chinese public corporation history. Alibaba Group became a public company on that day when its shares began trading on the New York Stock Exchange in the largest initial public offering in U.S. history. As we know, Alibaba is an Internet Commerce giant in China. In order to grow international businesses and consumers and to improve the company’s ecosystem, the Executive Chairman of the company, Jack Ma, made a decision to list BABA at the NYSE rather than HKSE. Alibaba features an unusual corporate governance structure---“partnership”, a group of 27 insiders who will nominate a majority of board members. Jack Ma believes that this share structure, something that’s possible in New York, would allow him to keep effective control over Alibaba. However, Hong Kong’s Exchange does not allow any publicly listed company to have dual-class share structures. To get rid of the restrictions, Alibaba choose to list at the NYSE. What’s more, Alibaba Group is so confident in its numbers and willing to let the SEC p over them. Their strategies are to increase active buyers and wallet share, to expand categories and offerings and to develop cross-border commerce opportunities. This goal motivated the company to finish a great transformation in international market with the beginning in NYSE. Alibaba, the selling shareholders and the underwriters named below have entered into an underwriting agreement with respect to the ADSs being offered-------Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs (Asia) L.L.C., J.P. Morgan Securities LLC, Morgan Stanley & Co. International plc and Citigroup Global Markets Inc. are acting as joint bookrunners of this offering and as the representatives of the underwriters. The underwriters will guarantee to offer part of the ADSs directly to the public at the public offering price and part of the ADSs to certain dealers at a price that represents a concession not in excess of the initial public offering price. After the initial offering of the ADSs, the offering price and other selling terms may from time to time be varied by the underwriters. And the underwriting syndicate is try to place the stock with its clients. For Alibaba, both of the underwriters and the syndicate played important role in their list on NYSE. There are three fees associated with an IPO. First, the firm must consider the legal and administrative cost of making a new issue, including the cost of preparing registration statements and filing fees. Second, the firm should examine the underwriting commission, the gross spread between the offering price and what the firm receives per share, which goes to cover the underwriting, management, and selling fees on the issue. The third cost is any underpricing on the issue, which provides a windfall to the investors who get the stock at the offering price and sell it at the much higher market price. For Alibaba, the expenses related to this offering includes SEC registration fee, NYSE listing fee, financial industry regulatory authority filling fee, printing and engraving expenses, independent advisory fees, legal fees and accounting fees. When it comes to the development of the price for offering, the leader investment bank first needs to make relates to the size of the initial issue and the use of the proceeds. The next…
Why Alibaba bailed on a Hong
REUTERS | March 19, 2014 10:19 AM ET
Nelson Ching/BloombergThe number of client inquiries about the Alibaba IPO is around a quarter of what it was
for Facebook Inc. at this stage of the process and about half of what it was for Twitter Inc., according to TD
After a year of waiting, the man running what could be the biggest-ever technology
IPO finally lost patience with Hong Kong.
Joe Tsai, the Alibaba Group Holding executive in charge of plans for…
Yahoo Inc. (Buy)
At time of purchase, Alibaba of China is preparing for its IPO, believed to be the largest IPO in history. As a large shareholder in Alibaba, we felt that the price of Yahoo will increase in anticipation of Alibaba’s IPO. We did not sell Yahoo because we expect its stock price to go up when Alibaba goes public sometime in the future.
Comcast was closing in on a merger with Time Warner Cable. The merger would give Comcast even more market power, enabling it to…
Alibaba Targets Record Debut
--From The Wall Street Journey, September 6-7
Alibaba, the Chinese e-commerce company, in paper filed Friday. It valued itself $155 billion, which is just below rival Amazon.com Inc.’s 160 million market capitalization. And, Alibaba’s worth could raise in the days ahead as the company officially introduces itself to investors in a process known as a roadshow. It will begin at Monday in New York. The $155 billion valuation representing the midpoint of an initial price…
Week One Team
Team ALL A
Type: Privately held
Industry: Internet, ecommerce, computer
Founded: Hangzhou China
Key people: Jack Ma
Revenue: USD 7.5 billion
The ethical and moral reason why we would
object to working for the company
Ali transaction may involve tax evasion-there has no laws and
regulations restraint personal seller pay business tax
Here are five articles:
Macy’s Rethinks E-Commerce Plan for Chinese Market
Mondelez Plans to Expand in Europe
Apple Hires Burberry CEO as Retail Chief
Jos.A.Bank Clothiers, No Suit for You
Weibo Can’t Hope to Simply Retweet Twitter IPO Success
Conclusion and future trends
From these articles, I see the trend that finance and business is becoming global. Lots of companies are seeking the market outside of domestic one because there are many potential profits in international…
Davis Inc. launches the magazine Yahoo! Internet Life, initially as ZD Internet Life. The magazine was meant to accompany and complement the website.
• April 12, 1996: Yahoo has Initial public offering, closing at $33.00, up 270% from the IPO price, after peaking at $43.00 for the day.
• October 8, 1997: Yahoo! acquires Four11, and Four11's Rocketmail service becomes Yahoo! Mail.
• June 8, 1998: Yahoo acquires Viaweb, co-founded by Paul Graham, which becomes Yahoo Store…
the only option. Milkowski was aware that at least some
members of the board were concerned about the future of
VoIP as a viable commercial venture given the recent history of the best known VoIP firm—Vonage. Their stock’s
history since the IPO was anything but stellar. Several
speculated that VoIP was just a few years ahead of its time.
They recognized that Vonage was primarily a service for
the residence market, and VoIP2.biz attacked the small and
midsize business market. Still they…