10 Updates

China's Alibaba Poised To Be World's Biggest IPO

May 1 2014, 4:26pm CDT | by

When investors get too pumped up on a Chinese internet stock, things tend to get ugly. But for now, word on the Street and in Shenzhen is that Alibaba’s initial public offering this quarter will be...

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12 weeks ago

China's Alibaba Poised To Be World's Biggest IPO

May 1 2014, 4:26pm CDT | by

When investors get too pumped up on a Chinese internet stock, things tend to get ugly. But for now, word on the Street and in Shenzhen is that Alibaba’s initial public offering this quarter will be the largest the world has ever seen.

Although China’s social media firm RenRen was not as large, around $740 million, the financial press and talking heads on CNBC saw this as a sign that China was going to take over social media. To some extent, it did, with SINA’s Weibo microblogging site now having more users than Twitter. The bad news for RenRen investors is that the stock is now 80.2% lower than it was when it listed on May 4, 2011.

Alibaba is more Amazon than Facebook . And investors are excited about China spending more time — and money — on line. China’s online shopping headcount is expected to go to 380 million from 145 million today, according to the Boston Consulting Group.

“Alibaba is best of breed. This is a number on name,” Tim Seymour, an emerging markets hedge fund manager at Triogem Asset Management, said on CNBC this week.

Alibaba delisted from the Hong Kong exchange in 2012 and went private in order to prepare for an IPO in New York.  The company and its bankers are reportedly moving to throw their own shares behind the offering, pushing the IPO’s projected value well past the $20 billion mark, China Daily reported on Thursday.

If that happens, it will be bigger than Facebook’s $16 billion listing in 2012 and bigger than the 2010 IPO of state-run  Agricultural Bank of China $22.1 billion. Visas $19.7 billion offering in 2010 is the largest IPO ever held in the US, according to IPO tracking site Dealogic.

Alibaba would eventually like to grow beyond China and take on rivals like Tencent Holdings the social messaging and video game company.

Alibaba sold $240 billion of merchandise in 2013. With more than 7 million merchants selling on its website, it posted over $2 billion in revenue and around $1 billion in profits last year.  The company is also looking to expand beyond e-commerce and is moving into the media and entertainment space, with the company’s billionaire founder Jack Ma acquiring a stake in Youku, China’s Youtube, which will eventually go to Alibaba.

Alibaba’s stock offering may start a global fight for online shoppers.  Alibaba’s massive influx of cash from its IPO would ultimately give it a war chest not only to take on Tencent, but also E-Bay and Amazon in the years ahead.

China’s expanding middle class are become more plugged in. Alibaba therefore has the world’s largest online consumer base, giving it ample reason to spend on innovation.

“The sheer manpower” China can bring to digital innovation is “huge”, and “extremely important”, said Paul-Bernhard Kallen, CEO of German media company Hubert Burda Media, during an interview at the Digital Life Design conference in Manhattan this week.

A Feb. 6 report by the National Science Board , the policy-making body of the U.S. government’s National Science Foundation, said U.S. predominance in science and technology has “eroded further during the last decade” while China has rapidly increased their innovation capacities.

The US’s share of global research and development since 2001 dropped to 30% from 37%, while China’s share grew to 15% percent from 4%, according to the report.

Alibaba has been an investor darling before.

It lost 54% of its share value from the time it listed in Hong Kong until delisting in June 2012.

See: China To Lead Digital Revolution  – China Daily/>/>

Alibaba Interested In Online Payment Company  – Bloomberg 

What You Need To Know About Alibaba IPO  – CBNC

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rakyat was told to ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into by robbers ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk Seri H ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the southern ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compensation. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Mi ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving a ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan B ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Sky ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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