NEWS

A Whopping $21.8 Billion In Record Breaking Public Offer – Alibaba

A Whopping $21.8 BillionA record breaking  $21.8 billion is what investors wrote in the Alibaba Group Holding Ltd Initial Public Offering (IPO) launched last week.

The company’s share is expected to begin trading at a price between $80 to $83 per share, thus a bargain price way above the $68 IPO level.

Alibaba is a HangZhou-based Chinese e-commerce company founded in 1999 by Jack Ma.

The company started out as a business-to-business portal to connect Chinese manufacturers with overseas buyers. However, today it has grown into an e-commerce giant covering business-to-business online web portals, online retail and payment services, a shopping search engine and data-centric cloud computing services.

In 2012, two of Alibaba’s portals together handled 1.1 trillion yuan ($170 billion) in sales, more than competitors eBay and Amazon.com combined.

Today, the company is valued at $167.6 billion at the IPO price, making it larger by market value than U.S. e-commerce rival Amazon.com Inc. If its shares rise above $87 — 28 percent over the IPO price — it will be larger than Amazon.com and EBay Inc. combined, the two U.S. companies against which it’s most often compared.

Davy Desmond, Readers Bureau, Senior Fellow

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