Question 1: Why did Alibaba’s owners decide to take the company public? What benefits did the decision offer the company?



Download 24.98 Kb.
Date10.05.2022
Size24.98 Kb.
#58775
ALIBABA case study

QUESTION 1: Why did Alibaba’s owners decide to take the company public? What benefits did the decision offer the company?

First, they wanted to raise capital to finance the infrastructure investment required at a company that was growing at breakneck speed. Second. publicly traded shares would give Alibaba a currency that it could use to acquire other enterprises (by offering its shares in exchange for the shares of an acquired company).Third, a public market in Alibaba shares would be a major liquidity event to the large number of Alibaba employees who held stock in the enterprise. It would enable them to more easily sell shares in order to raise cash for other purchases Initially


QUESTION 2: Why did Jack Ma decide to list his company on the New York Stock Exchange rather than in Hong Kong? Was it a good decision for his company?


Alibaba realized that an offering on the NYSE would have other advantages, beyond retaining control of the board. The NYSE is the largest and most liquid exchange in the world. U.S investors had an appetite for nternet offerings Demand for Alibaba shares was expected to be high, raising the possibility that Alibaba might have a record-setting IPO. Moreover, if its shares were listed on the NYSE, this might make it easier for Alibaba to subsequently use those shares to acquire U.S. and other foreign enterprises, giving Alibaba a bigger global footprint. According to that ,I think it's a good decision.

QUESTION 3: Why did Alibaba attract so much interest from investors? Should investors expect to earn significant profits from shares in Alibaba?


By 2013, Alibaba was the largest online e-commerce in the world.

Companies, investors should have confidence in Alibaba, because judging from the situation at that time, the e-commerce market has a huge prospect, while Alibaba can bypass the regulation of the Chinese market, but from the perspective of a free market, Alibaba has a huge profit prospect.
Download 24.98 Kb.

Share with your friends:




The database is protected by copyright ©ininet.org 2022
send message

    Main page