Chinese Internet Giant Alibaba went to the stock market this Friday, the IPO is expect to be the biggest since Facebook, maybe it will even become the biggest IPO in history. It is easy to trade CFD shares in Alibaba through online broker Plus500. You can register for a free account now and easily transfer money to your trading account, so you can start trading as soon as Alibaba’s IPO starts.
The Alibaba Group is a Chinese company that consists of several different services, from retail services and cloud computing to shopping search engines as well as Internet-based portals. The Alibaba Group has a higher turn over than eBay and Amazon combined, and its overall value is currently ranked between $100 billion and $150 billion.
Alibaba was priced at the IPO at $68, and on the first day of trading it shot up with 36% to an opening price $92.70.
Alibaba’s shares are at this moment in hand of a small group of shareholders, including Yahoo (24%) and Softbank (33%). All eyes will be now upon Alibaba’s share listing, so that also small investors can buy shares in the Alibaba group. Investors are gearing up for the momentum as they’ve seen how Alibaba has been able to prove its position over the years.
As per the most recent update, Alibaba is soon going to be a part of the U.S. market as the e-commerce company is planning for a share listing in the U.S. at the end of 2014. The company seems a bit reluctant to announce the final date though. Investors really want to see how the whole e-commerce industry reacts to the news. Many of them are expecting Alibaba to change the e-commerce platform globally. Now it’s time to see whether the news floating all around just stay as a hype or the company really gets better as a more powerful internet giant than before. The sources say that the company is expecting to be valued over $150 billion from its IPO, which will possibly make it the biggest IPO.
Now when Alibaba is all set for an official entry in the U.S. stock exchange, analysts are making predictions in relation to what could be the company’s real value if it goes public. A recent poll organized by Reuters found that analysts are pretty overwhelmed about this company’s market valuation. They are expecting Alibaba’s real market value to be around $140 billion and its IPO to be $15 billion. However, most investors are seeing this as a big opportunity to take advantage of China’s growing retail market.
Alibaba’s plan for launching its IPO had
to suffer a little delay due to its struggle with the Hong Kong regulators. The company was struggling to reach a final conclusion regarding an expected partnership structure. The e-commerce company wasn’t getting the final confirmation from the Hong Kong Exchange for the partnership structure it wanted.
But now, media has confirmed that the company has finally received the go ahead signal for its desired partnership structure. The e-commerce company has been able to get over all those complications as it has now got the deal it ever wanted. The sources have revealed that the company has now got an assurance from the New York Stock Exchange and Nasdaq that the partnership structure, which the company expected for its share offering, will now get a final approval under the regulations and laws of both the exchanges. Now all are waiting to see what happens next as the company still didn’t reveal its official IPO launch date.
More about Alibaba
Alibaba started in 1999 by 18 people, one of them being a former English teacher, and current CEO, Jack Ma. The company initially started out as a small business trying to support other small companies and start-up businesses. As the years passed, Alibaba.com has become the world’s largest online retailer, mainly because it has provided high-quality goods at wholesale prices.
The Alibaba Group is now one of the biggest (if not the biggest) ecommerce company on the Chinese market, but this does not mean that Alibaba does not have any strong competitors .
Nowadays Alibaba.com is considered the largest business to business trading platform on the Internet, and it is especially designed for small businesses. The Alibaba Group currently handles sales that take place between buyers and sellers from more than 240 countries from all, around the world. Also, a great deal of all the financial transactions that take place in the online environment in China are conducted via an online escrow-based payment service known as Alipay. Alibaba.com has also created a special transaction-based retail website known as AliExpress. where buyers can purchase small quantities of goods at highly affordable prices.
The company at present serves nearly 618 million web users. Its e-commerce sites, which include Alibaba.com, Taobao and TMall. revealed a sales of $160 billion in 2012. If all goes well, the company could really bring a fortune for many aspiring investors.
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