Alibaba, the most well-known e-commerce giant in China recently raised almost $22 billion in an IPO(Initial Public Offering Price) that will make the Chinese e-commerce brand one of the most valuable companies in the world.
Alibaba was expected to price within a range of $66 to $68. And it finally got a price of $68 per share—at the top of the expected range.
As a listed company, Alibaba’s offshore corporate structure gives no voting rights to shareholders. However, this is an issue for long-term holders. Regardless of this issue, however, I am wondering how Alibaba stole the show when it firstly step on the stage of the US stock market.
A few reasons are as follows.
1. Alibaba is regarded as a mysterious company because it is somehow impossible for people to get some important numbers or data illustrating the scale and growth of the company. Since it was not a listed company, those financial statements cannot be easily found online. So all the thing investors are able to take into account is the growth and the possibility of being more successful.
Alibaba emphasizes the interaction with consumers instead the management or selling of commodities. Thus, the great number of consumers makes sure the growth of Alibaba even the whole e-commerce industry.
3. Asian investors may have played a very significant role in the pricing of the IPO. As known as a giant company in e-commerce in China, those investors having relationship with China will show more willingness to put in market orders.
References:
Alibaba Prices World’s Biggest IPO, Seeks to Raise $21.8 Billion. (2014, September 18). <http://www.nbcnews.com/business/markets/alibaba-prices-worlds-biggest-ipo-seeks-raise-21-8-billion-n206721>