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112-605: In September 2018, Ma announced that he would retire from the company he founded and the source of his wealth, internet merchandiser Alibaba , in order to pursue educational work, philanthropy, and environmental causes. In 2019 the JMF started the Netpreneur Initiative that grants ten prizes of one million dollars each to ten African entrepreneurs per year and launched a fund with $ 14.6 million to develop education in Tibet . In 2020, JMF

224-613: A comparison shopping website that offers search results from mostly Chinese online shopping platforms, including product searches, sales and coupon searches. According to the Alibaba Group web site, eTao offers products from Amazon China, Dangdang , Gome, Yihaodian , Nike China, and Vancl, as well as Taobao and Tmall. As part of a restructuring of Taobao by Alibaba, these spin-offs became separate companies in 2011, with Tmall and eTao becoming separate businesses in June and Juhuasuan becoming

336-665: A state-owned enterprise of the China Internet Investment Fund , established by the Cyberspace Administration of China , took a 1 percent golden share investment in two Alibaba subsidiaries that control Youku and UCWeb . In March 2023, Alibaba announced their "1+6+N" restructuring plan, which reorganized its business structure into six independently run entities: Cloud Intelligence Group, Taobao and Tmall Group, Cainiao Smart Logistics Network, Local Services group, Alibaba International Digital Commerce, and

448-575: A variable interest entity (VIE) structure, buying a 40% stake in the company for US$ 1 billion. This would as a result net in US$ 10 ;billion in Alibaba's IPO alone to Yahoo!. In 2012, China Investment Corporation led a group of Chinese investors in buying out Yahoo!'s 40% stake and in buying the Alibaba shares that had traded on the Hong Kong Stock Exchange . According to Li Chuan,

560-628: A Chinese crackdown on big tech , SAMR issued a $ 2.8 billion fine against Alibaba for anti-competitive practices and ordered Alibaba to file self-examination and compliance reports to the SAMR for three years. This amounted to 12% Archived 3 June 2021 at the Wayback Machine of its 2020 net profit. Critics say the move tightens the Chinese's governments control of tech companies. Alibaba stated that it would dedicate itself to correct its errors and accepted

672-563: A US$ 25 million investment from Swedish Wallenberg family's Investor AB , Goldman Sachs and SoftBank . In 1999, Wallenbergs Investor AB owned 6% of the shares. Alibaba.com was expected to improve the domestic e-commerce market and perfect an e-commerce platform for Chinese enterprises, especially small and medium-sized enterprises (SMEs), to help export Chinese products to the global market as well as to address World Trade Organization (WTO) challenges. In 2002, Alibaba.com became profitable three years after launch. Ma wanted to improve

784-568: A better result. In addition to the extensive international evidence that auctions have not been popular for IPOs, there is no U.S. evidence to indicate that the Dutch auction fares any better than the traditional IPO in an unwelcoming market environment. A Dutch auction IPO by WhiteGlove Health, Inc., announced in May 2011 was postponed in September of that year, after several failed attempts to price. An article in

896-511: A cloud computing service platform, including e-commerce data mining, e-commerce data processing, and data customization. It has R&D centres and operators in Hangzhou, Beijing, Hong Kong, Singapore, Silicon Valley and Dubai. In July 2014, Alibaba Cloud entered into a partnership deal with Inspur. Alibaba Cloud is the largest high-end cloud computing company in China. In 2009, Alibaba acquired HiChina,

1008-455: A company is listed, it is able to issue additional common shares in a number of different ways, one of which is the follow-on offering . This method provides capital for various corporate purposes through the issuance of equity (see stock dilution ) without incurring any debt. This ability to quickly raise potentially large amounts of capital from the marketplace is a key reason many companies seek to go public. An IPO accords several benefits to

1120-425: A damage control view suggesting that the subscription-driven, third-party verified "China Gold Supplier" program was endangered by diminished trust in its endorsement system, removing the incentive for global buyers to choose Alibaba as their business-to-business service, thus more broadly endangering Alibaba through impact on its brand and capabilities (the latter via the "defenestration of senior people"). The scandal

1232-557: A deal that was worth 1.2 billion yuan (US$ 192 million). On 5 September 2014, the group—in a regulatory filing with the US Securities and Exchange Commission (SEC)—set a US$ 60- to $ 66- per-share price range for its scheduled initial public offering (IPO), the final price of which would be determined after an international roadshow to gauge the investor interest in Alibaba shares to shareholders. On 18 September 2014, Alibaba's IPO priced at US$ 68, raising US$ 21.8 billion for

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1344-421: A firm's stock of patents mitigates this effect. A Dutch auction allows shares of an initial public offering to be allocated based only on price aggressiveness, with all successful bidders paying the same price per share. One version of the Dutch auction is OpenIPO , which is based on an auction system designed by economist William Vickrey . This auction method ranks bids from highest to lowest, then accepts

1456-571: A global logistics network, underpinning an aggressive overseas expansion, and demonstrating Alibaba's commitment to building the most efficient logistics network in China and around the world. It is investing a further 5.3 billion yuan in Cainiao Logistics to boost its stake to 51 percent from 47 percent. The investment would value Cainiao, a joint venture of top Chinese logistics firms, at around US$ 20 billion. Alibaba uses Cainiao software at its Belgian-European sales hub. The software

1568-503: A host for other businesses to sell to consumers. Similar to eBay, sellers on Aliexpress can be either companies or individuals. It connects Chinese businesses directly with buyers. The main difference from Taobao is that it's aimed primarily at international buyers, mainly the US, Russia, Brazil and Spain. In 2012, Alibaba instituted its Public Dispute Resolution Center, which crowdsources buyers and sellers to vote on transactional rules and decide

1680-471: A mobile app that recommends customers products based on data analytics. In addition, customers can have their groceries cooked to eat in the food court of the supermarket. In October 2018, it was reported that Alibaba's Koubei have merged with online food delivery service platform Ele.me into a new local life service subsidiary. However, the newly formed Alibaba Local Life Service entity experienced major competition from local service giant Meituan , which

1792-461: A preliminary prospectus, known as a red herring prospectus , during the initial quiet period. The red herring prospectus is so named because of a bold red warning statement printed on its front cover. The warning states that the offering information is incomplete, and may be changed. The actual wording can vary, although most roughly follow the format exhibited on the Facebook IPO red herring. During

1904-589: A public appearance in Hangzhou, China in March 2023 where he met with students and teachers at the Alibaba partners-funded Yungu School. In February 2021, Alibaba sold $ 5 billion in bonds, the company's third large sale of dollar bonds , issuing four sets priced to yield between 2.143% and 3.251%. The four sets of bonds were $ 1.5 billion of both 10-year and 30-year debt along with $ 1 billion of bonds due in 20 and 40 years. The 20-year bonds were designated as sustainability notes . On 9 April 2021, as part of

2016-561: A senior executive at Alibaba, the company was planning in 2013 to open traditional brick and mortar retail outlets in partnership with Wanda Group, a Chinese real estate company. Additionally, Alibaba purchased a 25% stake in Hong Kong-listed Chinese department store chain Intime Retail in early 2014. In early 2017, Alibaba and Intime's founder Shen Guojun agreed to pay as much as HK$ 19.8 billion (US$ 2.6 billion) to take

2128-585: A separate business later in October. In 2010, Alibaba launched AliExpress.com, an online retail service made up of mostly small Chinese businesses offering products to international online buyers. It is the most visited e-commerce platform in Russia. It allows small businesses in China to sell to customers all over the world, resulting in a wide variety of products. It might be more accurate to compare AliExpress to eBay, though, as sellers are independent; it simply serves as

2240-628: A significant amount of technology for the Digital Silk Road . In 1999, Jack Ma launched the primary business of Alibaba, Alibaba.com, while working as an English teacher in Hangzhou . Alibaba.com later became the world's largest online B2B trading platform for small businesses as of 2014. Alibaba.com has three main services: the English language portal Alibaba.com, which handles sales between importers and exporters from more than 240 countries and regions,

2352-461: A variety of products for retail sales. Taobao grew to become China's largest C2C online shopping platform and later became the second most visited website in China, according to Alexa Internet . Taobao's growth was attributed to offering free registration and commission-free transactions using a free third-party payment platform. Advertising made up 75 percent of the company's total revenue, allowing it to break even in 2009. In 2010, Taobao's profit

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2464-484: Is theglobe.com IPO which helped fuel the IPO "mania" of the late 1990s internet era. Underwritten by Bear Stearns on 13 November 1998, the IPO was priced at $ 9 per share. The share price quickly increased 1,000% on the opening day of trading, to a high of $ 97. Selling pressure from institutional flipping eventually drove the stock back down, and it closed the day at $ 63. Although the company did raise about $ 30  million from

2576-572: Is a 12 nm 16-core with a clockrate of 2.5 GHz, and was designed by Alibaba's subsidiary T-Head (also known as Pingtouge). Alibaba claim the Xuantie-910 is faster than the ARM Cortex-A73 and is capable of 7.1 Coremark/MHz. On 25 September 2019, Alibaba announced an AI accelerator called the Hanguang 800. The Hanguang 800 contains 17 billion transistors built with a 12 nm process and

2688-603: Is a member of the Chinese Communist Party , some analysts nevertheless believe that the Chinese government may view Ma's personal foreign and domestic popularity as a mixed blessing. Alibaba Group Alibaba Group Holding Limited , branded as Alibaba ( / ˌ æ l i ˈ b ɑː b ə , ˌ ɑː -/ ), is a Chinese multinational technology company specializing in e-commerce , retail , Internet , and technology . Founded on 28 June 1999 in Hangzhou, Zhejiang ,

2800-511: Is able to access data about retailers, products, transport details and flows, a person familiar with the company's IT systems told the British newspaper Financial Times . Chinese companies are legally obliged to pass on their data to China's authorities and security services. The Belgium State Security Service is monitoring the hub in Lütich because of this fact and possible espionage . According to

2912-539: Is an expensive process, IPOs also typically involve one or more law firms with major practices in securities law , such as the Magic Circle firms of London and the white-shoe firms of New York City. Financial historians Richard Sylla and Robert E. Wright have shown that before 1860 most early U.S. corporations sold shares in themselves directly to the public without the aid of intermediaries like investment banks. The direct public offering (DPO), as they term it,

3024-399: Is backed by Tencent , leading to rumours of planned layoffs in 2022. In September 2019, Alibaba announced it would acquire Chinese e-commerce platform Kaola from NetEase for around US$ 2 billion . In October 2020, Alibaba agreed to pay US$ 3.6 billion to take control of China's biggest hypermarket operator Sun Art (SEHK: 6808) from French billionaire Mulliez family . The deal doubled

3136-427: Is designed as an online mall for brands such as airline companies and agencies. Fliggy set the target audience as the younger generation and it strives to become a one-stop service when they plan their trips, particularly in overseas travel. On 7 August 2017, Alibaba Group and Marriott International hotel group announced a comprehensive strategic co-operation. Two companies will set up a joint venture company. Through

3248-451: Is low enough to stimulate interest in the stock but high enough to raise an adequate amount of capital for the company. When pricing an IPO, underwriters use a variety of key performance indicators and non-GAAP measures. The process of determining an optimal price usually involves the underwriters ("syndicate") arranging share purchase commitments from leading institutional investors. Some researchers (Friesen & Swift, 2009) believe that

3360-437: Is not a thief. Alibaba is a kind, smart business person, and he helped the village. So ... easy to spell, and global know. Alibaba opens sesame for small- to medium-sized companies. We also registered the name AliMama, in case someone wants to marry us! On 28 June 1999, Jack Ma , with 17 friends and students founded Alibaba.com, a China-based B2B marketplace site, in his Hangzhou apartment. In October 1999, Alibaba received

3472-417: Is possible that the financial incentives of the advisor and client may not be aligned. The issuer usually allows the underwriters an option to increase the size of the offering by up to 15% under a specific circumstance known as the greenshoe or overallotment option. This option is always exercised when the offering is considered a "hot" issue, by virtue of being oversubscribed. In the US, clients are given

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3584-399: Is to generate additional interest in the stock and a rapid rise in share price when it first becomes publicly traded (known as an "IPO pop"). Flipping , or quickly selling shares for a profit , can lead to significant gains for investors who were allocated shares of the IPO at the offering price. However, underpricing an IPO results in lost potential capital for the issuer. One extreme example

3696-582: Is typically underwritten by one or more investment banks , who also arrange for the shares to be listed on one or more stock exchanges . Through this process, colloquially known as floating , or going public , a privately held company is transformed into a public company . Initial public offerings can be used to raise new equity capital for companies, to monetize the investments of private shareholders such as company founders or private equity investors, and to enable easy trading of existing holdings or future capital raising by becoming publicly traded. After

3808-452: Is usually underwritten by a " syndicate " of investment banks, the largest of which take the position of "lead underwriter". Upon selling the shares, the underwriters retain a portion of the proceeds as their fee. This fee is called an underwriting spread . The spread is calculated as a discount from the price of the shares sold (called the gross spread ). Components of an underwriting spread in an initial public offering (IPO) typically include

3920-551: The Alibaba Group , has also donated similar materials to Iran, Italy, Spain, Belgium, Japan and South Korea. He also announced a donation of 1.1 million tests, 6 million masks, and 60,000 protective suits to all African countries to combat the pandemic. For instance in Nigeria a senior health official, Abdulaziz Abdullahi, said that the country had received 100,000 face masks, 1,000 protective gowns and 20,000 test kits. On 18 March 2020,

4032-564: The Financial Times , Cainiao denied suggestions of wrongdoing, noting that the firm operates in compliance with relevant laws and regulations. According to the Reuters , Alibaba Group Holding Ltd has divested its logistics arm for $ 8.5 billion to a consortium led by investment firms Boyu Capital and Primavera Capital Group . In conjunction with the company's 10th anniversary, Alibaba launched Alibaba Cloud in September 2009, aiming to build

4144-656: The New York Stock Exchange raised US$ 25 billion, giving the company a market value of US$ 231 billion and, by far, then the largest IPO in world history. It is one of the top 10 most valuable corporations, and is named the 31st-largest public company in the world on the Forbes Global 2000 2020 list. In January 2018, Alibaba became the second Asian company to break the US$ 500 ;billion valuation mark, after its competitor Tencent . As of 2022 , Alibaba has

4256-457: The Olympic Games . In September 2018, Jack Ma, the main founder of Alibaba, announced that he would step down as chairman in a year's time so he could focus on philanthropy. In response to the announcement, The Economist stated that Ma had a significant impact in China and worldwide via contributions and dedication to various businesses. In May 2019, Bloomberg cited sources familiar with

4368-522: The Tmall Genie smart speaker. In 2018, Alibaba's Wanli Min presented City Brain , a technology geared towards urban solutions such as streamlining traffic, detecting accidents and improving transport efficiency. China's government designated Alibaba as one of its "AI champions " in 2018. On 27 July 2019, Alibaba unveiled a 64-bit RISC-V processor called the XuanTie-910 (Black Iron 910). It

4480-498: The publicani were legal bodies independent of their members whose ownership was divided into shares, or partes . There is evidence that these shares were sold to public investors and traded in a type of over-the-counter market in the Forum , near the Temple of Castor and Pollux . The shares fluctuated in value, encouraging the activity of speculators, or quaestors . Mere evidence remains of

4592-649: The Chinese government have been criticized for being faulty or being too low-quality to use. Following U.S. State Department gratitude over Taiwan's shipment of 2 million masks, the Chinese Foreign Ministry tweeted in April 2020, "Wonder if @StateDept has any comment on Jack Ma's donation of 1 million masks and 500k testing kits as well as Chinese companies' and provinces' assistance?" Chinese media at one point in April 2020 mentioned Ma almost as often as it mentioned Chinese Communist Party leader , Xi Jinping . While Ma

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4704-468: The Chinese portal 1688.com, which manages domestic B2B trade in China, and AliExpress .com, a global consumer marketplace. Alibaba.com went public at the Hong Kong Stock Exchange in 2007, and was delisted again in 2012. In 2013, 1688.com launched a direct channel that was responsible for $ 30 million in daily transaction value. In 2003, Alibaba launched Taobao Marketplace (淘宝网), offering

4816-484: The Digital Media and Entertainment group. Each business unit would have their own CEO and board of directors and be able to seek their own fundraising and market listings. Under the new "1+6+N" structure, Alibaba also established a Capital Management Committee and a Compliance and Risk Committee. The Wall Street Journal reported on 30 March that Jack Ma engineered this in talks with company CEO Daniel Zhang while he

4928-507: The Dutch auction is still a little used method in U.S. public offerings, although there have been hundreds of auction IPOs in other countries. In determining the success or failure of a Dutch auction, one must consider competing objectives. If the objective is to reduce risk, a traditional IPO may be more effective because the underwriter manages the process, rather than leaving the outcome in part to random chance in terms of who chooses to bid or what strategy each bidder chooses to follow. From

5040-407: The Dutch auction system for its initial public offering. Traditional U.S. investment banks have shown resistance to the idea of using an auction process to engage in public securities offerings. The auction method allows for equal access to the allocation of shares and eliminates the favorable treatment accorded important clients by the underwriters in conventional IPOs. In the face of this resistance,

5152-470: The IPO are restricted from issuing any earnings forecasts or research reports for the company. When the quiet period is over, generally the underwriters will initiate research coverage on the firm. A three-day waiting period exists for any member that has acted as a manager or co-manager in a secondary offering. Not all IPOs are eligible for delivery settlement through the DTC system , which would then either require

5264-509: The IPO, shares are traded freely in the open market at what is known as the free float. Stock exchanges stipulate a minimum free float both in absolute terms (the total value as determined by the share price multiplied by the number of shares sold to the public) and as a proportion of the total share capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although IPO offers many benefits, there are also significant costs involved, chiefly those associated with

5376-671: The JMF published Handbook of COVID-19 Prevention and Treatment , a detailed 68-page book edited by Tingbo Liang that documents the clinical experience obtained at the First Affiliated Hospital of the Zhejiang University School of Medicine in the fight against the coronavirus pandemic. The BBC called Ma's efforts to send medical equipment to over 150 countries "unrivaled". While Jack Dorsey of Twitter has pledged more money, Ma's shipments of vital supplies might sometimes be more welcome than cash. Beneficiaries include

5488-412: The U.S., Russia, Israel, and Iran; as of April 2020, Ma has declined to donate to any countries such as Honduras and Haiti that have diplomatic ties with Taiwan . Chinese ambassadors are often present at ceremonial handovers of Ma's supplies to beneficiary countries. Ma's shipments appear to have gone smoothly, with the exceptions of Cuba and Eritrea ; in contrast, shipments to several countries from

5600-495: The Wall Street Journal cited the reasons as "broader stock-market volatility and uncertainty about the global economy have made investors wary of investing in new stocks". Under American securities law, there are two-time windows commonly referred to as "quiet periods" during an IPO's history. The first and the one linked above is the period of time following the filing of the company's S-1 but before SEC staff declare

5712-566: The announcement. A statement from the firm reported that Yan Limin, the general manager of Alibaba.com at the time, had been dismissed in March for "misconduct"; Phil Muncaster of UK's The Register additionally reported that "a further 28 employees had been involved in dodgy dealings". As The Economist noted, the company's response has conflicting components: Alibaba's promulgated view that its corrective actions indicate its commitment to quality and integrity (where it contrasts itself with other scandal-associated Chinese business sectors), versus

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5824-408: The assumption of independent private values (that the value of IPO shares to each bidder is entirely independent of their value to others, even though the shares will shortly be traded on the aftermarket). Theory that incorporates assumptions more appropriate to IPOs does not find that sealed bid auctions are an effective form of price discovery, although possibly some modified form of auction might give

5936-593: The business for an equal equity stake. In 2016, Alibaba acquired control of Singapore-based e-commerce platform Lazada . Lazada is the largest e-commerce platform in southeast Asia, with a major presence in Malaysia, the Philippines, Singapore, Thailand, and Vietnam. This acquisition increased integration on Alibaba between Chinese merchants and their customers in southeast Asia. In October 2016, Alibaba launched Alitrip, later named Fliggy, an online travel platform that

6048-422: The capital to its public investors. Those investors must endure the unpredictable nature of the open market to price and trade their shares. After the IPO, when shares are traded in the market, money passes between public investors. For early private investors who choose to sell shares as part of the IPO process, the IPO represents an opportunity to monetize their investment. After the IPO, once shares are traded in

6160-407: The company (primary offering) as well as to any early private investors who opt to sell all or a portion of their holdings (secondary offerings) as part of the larger IPO. An IPO, therefore, allows a company to tap into a wide pool of potential investors to provide itself with capital for future growth, repayment of the debt, or working capital. A company selling common shares is never required to repay

6272-472: The company and investors. Alibaba was the biggest US IPO in history, bigger than Google, Facebook, and Twitter combined. On 19 September 2014, Alibaba's shares (BABA) began trading on the NYSE at an opening price of $ 92.70 at 11:55 am EST. On 22 September 2014, Alibaba's underwriters announced their confirmation that they had exercised a greenshoe option to sell 15% more shares than originally planned, boosting

6384-438: The company provides consumer-to-consumer (C2C), business-to-consumer (B2C), and business-to-business (B2B) sales services via Chinese and global marketplaces, as well as local consumer, digital media and entertainment, logistics, and cloud computing services. It owns and operates a diverse portfolio of companies around the world in numerous business sectors. On 19 September 2014, Alibaba's initial public offering (IPO) on

6496-604: The company to return its focus to digital-payments. People's Daily , the official newspaper of the Central Committee of the Chinese Communist Party , endorsed the investigation shortly after the announcement, claiming the investigation to be "an important step in strengthening antimonopoly oversight in the internet sphere". As a result, from the antitrust probe, Alibaba lost nearly all of its stock-market gains in 2020, from $ 859 billion to $ 586 billion, by

6608-548: The company. On 23 June 2015, Alibaba announced that it is selling 11 Main to OpenSky, an online-marketplace operator based in New York. In February 2015, Alibaba invests US$ 590 million in Meizu , acquiring an undisclosed minority stake. In June 2015, Alibaba started a joint venture Koubei with its affiliate Ant Financial Group to tap China's fast-growing local services market, each investing approximately US$ 483 million into

6720-442: The concession, while the member of the syndicate who provided the shares to that broker-dealer would retain the underwriting fee. Usually, the managing/lead underwriter, also known as the bookrunner , typically the underwriter selling the largest proportions of the IPO, takes the highest portion of the gross spread , up to 8% in some cases. Multinational IPOs may have many syndicates to deal with differing legal requirements in both

6832-399: The counterfeiters as of 4 January 2017 , but brands whose sales have been affected by the counterfeit products accused Alibaba of not doing enough. In 2017, Alibaba started opening a chain of supermarkets, named Freshippo (or Hema; 盒马), as part of the company's "new retail strategy," where customers can either order in the store or online for delivery in under 30 minutes. It offers

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6944-613: The docking technology system and the superiority resources, Fliggy has Marriott hotel flagship store. It has the same function with Marriott Chinese website and Marriott mobile app to create the best global travel experience for consumers. In 2016, the Office of the United States Trade Representative added Taobao back onto a list of notorious counterfeit platforms that includes the likes of torrent site The Pirate Bay . Alibaba denied wrongdoing and filed two lawsuits against

7056-400: The eighth most visited web site in China as of 2013. In 2012, Tmall.com later changed its Chinese name to Tianmao (天猫, "sky cat"), reflecting Tmall's Chinese pronunciation. In March 2010, Taobao launched the group shopping website Juhuasuan (聚划算), offering "flash sales", which are products that are available at a discount for only a fixed time period. In October 2010, Taobao beta-launched eTao,

7168-473: The end of December. Jack Ma, co-founder of both Alibaba and Ant Group , vanished from public view when Ant's IPO was suspended in early November, but resurfaced in January 2021 in a 50-second video, appearing briefly via video link at the digitally facilitated Rural Teacher Initiative. As of February 2021, he has yet to be seen in public. The video appearance caused Alibaba stock to jump more than 7%. Jack Ma made

7280-448: The final IPO prospectus is for the issuer to retain one of the major financial "printers", who print (and today, also electronically file with the SEC ) the registration statement on Form S-1. Typically, preparation of the final prospectus is actually performed at the printer, wherein one of their multiple conference rooms the issuer, issuer's counsel (attorneys), underwriter's counsel (attorneys),

7392-557: The fine without making any appeal. On 11 November 2021, it was reported that over the course of its 11-day Singles' Day sales extravaganza, Chinese e-commerce giant Alibaba Group Holding received a record 540.3 billion yuan (S$ 114.4 billion) in orders, a 14 percent increase over the previous year. In July 2022, the SEC added Alibaba to a list of companies facing delisting from U.S. stock exchanges if its auditors remain unable to examine Alibaba's books before 2024. In December 2022,

7504-468: The following (on a per-share basis): Manager's fee, Underwriting fee—earned by members of the syndicate, and the Concession—earned by the broker-dealer selling the shares. The Manager would be entitled to the entire underwriting spread. A member of the syndicate is entitled to the underwriting fee and the concession. A broker-dealer who is not a member of the syndicate but sells shares would receive only

7616-627: The founders, replied to Lorraine Hahn on TalkAsia : One day I was in San Francisco in a coffee shop, and I was thinking Alibaba is a good name. And then a waitress came, and I said do you know about Alibaba? And she said yes. I said what do you know about Alibaba, and she said ' Open Sesame .' And I said yes, this is the name! Then I went onto the street and found 30 people and asked them, 'Do you know Alibaba'? People from India, people from Germany, people from Tokyo and China. ... They all knew about Alibaba. Alibaba—open sesame. Alibaba—40 thieves. Alibaba

7728-463: The global e-commerce system, so from 2003 onward, Alibaba launched Taobao Marketplace , Alipay , Alimama.com, and Lynx. When eBay announced its expansion into China in 2003, Ma viewed the American company as a foreign competitor and rejected eBay's buyout of Alibaba's subsidiary Taobao. By applying existing technologies, gaining trust in the Chinese e-commerce market, and expanding through dominating

7840-403: The group's stake in the hypermarket chain with a tootles ownership of 72%. Alibaba.com offers a paid Gold Supplier membership to try to ensure that each seller is genuine; sellers' Gold Supplier status and the number of years it has been held are displayed. The supplier verification types and checks are listed on Alibaba.com's website, with more stringent checks for sellers outside China. While

7952-421: The highest bids that allow all shares to be sold, with all winning bidders paying the same price. It is similar to the model used to auction Treasury bills , notes, and bonds since the 1990s. Before this, Treasury bills were auctioned through a discriminatory or pay-what-you-bid auction, in which the various winning bidders each paid the price (or yield) they bid, and thus the various winning bidders did not all pay

8064-458: The issued shares, the stock may fall in value on the first day of trading. If so, the stock may lose its marketability and hence even more of its value. This could result in losses for investors, many of whom being the most favored clients of the underwriters. Perhaps the best-known example of this is the Facebook IPO in 2012. Underwriters, therefore, take many factors into consideration when pricing an IPO, and attempt to reach an offering price that

8176-425: The issuer's domestic market and other regions. For example, an issuer based in the E.U. may be represented by the major selling syndicate in its domestic market, Europe, in addition to separate group corporations or selling them for US/Canada and Asia. Usually, the lead underwriter in the head selling group is also the lead bank in the other selling groups. Because of the wide array of legal requirements and because it

8288-576: The largest B2B (Alibaba.com), C2C ( Taobao ), and B2C ( Tmall ) marketplaces in the world. It has been expanding into the media industry, with revenues rising by triple percentage points year after year. It also set the record on the 2018 edition of China's Singles' Day , the world's biggest online and offline shopping day. The company's name came from the character Ali Baba from the Middle Eastern folk-tale collection One Thousand and One Nights because of its universal appeal. As Jack Ma , one of

8400-412: The largest domain registration service and web hosting service company in China, and built it into Alibaba Cloud. On 28 July 2011, Alibaba Cloud released AliOS (formerly Yun OS and Aliyun OS ), a Linux distribution designed for mobile devices. In the 2017 Computing Conference in Hangzhou, Alibaba launched AliGenie , a China-based open-platform intelligent personal assistant. It is currently used in

8512-586: The lawsuit. Alibaba is among the most prominent investors in Thailand's Eastern Economic Corridor , which was opened in 2018. Alibaba committed approximately US$ 320 million for the development of an e-commerce digital hub in the EEC. In January 2017, Alibaba and the International Olympic Committee jointly announced an $ 800 million deal that would last until 2028 where the company would sponsor

8624-654: The lead underwriter(s), and the issuer's accountants/auditors make final edits and proofreading, concluding with the filing of the final prospectus by the financial printer with the Securities and Exchange Commission. Before legal actions initiated by New York Attorney General Eliot Spitzer , which later became known as the Global Settlement enforcement agreement, some large investment firms had initiated favorable research coverage of companies in an effort to aid corporate finance departments and retail divisions engaged in

8736-426: The listing regime. Planning is crucial to a successful IPO. One book suggests the following seven planning steps: IPOs generally involve one or more investment banks known as " underwriters ". The company offering its shares, called the "issuer", enters into a contract with a lead underwriter to sell its shares to the public. The underwriter then approaches investors with offers to sell those shares. A large IPO

8848-514: The lowest close in around 6 months, following the antitrust investigation into the company by Chinese regulators. In December 2020, China's State Administration for Market Regulation (SAMR) stated that it opened an investigation into Alibaba over monopolistic practices. The country's central bank , as well as three other regulators, confirmed in a separate statement that the affiliated Ant Group would also be summoned for discussions over "competition and consumer rights", where regulators instructed

8960-438: The majority of suppliers are reported to be genuine, there have been many cases of sellers, some with Gold Supplier status, seeking to defraud unsuspecting buyers. In February 2011, controversy ensued when Alibaba's corporate office admitted that it had granted the mark of integrity of its "China Gold Supplier" program to more than 2,000 dealers that had subsequently defrauded buyers; the firm's share price dropped "abruptly" after

9072-433: The market at a loss before making a return on additional services, Alibaba's subsidiaries outperformed eBay in the Chinese e-commerce market, claiming a growing percentage of consumers from eBay. Alibaba subsidiary Taobao would later force eBay out of the Chinese market, with eBay closing its unprofitable China Web unit, though the two companies would break even six years later. In 2005, Yahoo! invested in Alibaba through

9184-576: The marketing of new issues. The central issue in that enforcement agreement had been judged in court previously. It involved the conflict of interest between the investment banking and analysis departments of ten of the largest investment firms in the United States. The investment firms involved in the settlement had all engaged in actions and practices that had allowed the inappropriate influence of their research analysts by their investment bankers seeking lucrative fees. A typical violation addressed by

9296-655: The matter as saying that Alibaba was considering raising $ 20 billion through a second listing in Hong Kong. In November 2019, Alibaba raised 12.9 billion in its secondary listing in Hong Kong, which became the world's largest offering that year. On Tuesday, 10 September 2019, Jack Ma officially stepped down as the chairman of Alibaba, Daniel Zhang succeeded him at the head of the company. In November 2020, The Wall Street Journal reported that Chinese leader Xi Jinping personally scuttled Jack Ma's Ant Group IPO. Bo Zhuang, chief China economist at TS Lombard said that

9408-421: The ninth-highest global brand valuation . Alibaba is one of the world's largest retailers and e-commerce companies . In 2020, it was also rated as the fifth-largest artificial intelligence company. It is also one of the biggest venture capital firms and investment corporations in the world, as well as the second largest financial services group behind Visa via its fintech arm Ant Group . The company hosts

9520-457: The number of stores with sales between ¥10 thousand and ¥1 million increased by 30%, and the number of stores with sales over ¥1 million increased by 33%. In April 2008, Taobao introduced a spin-off, Taobao Mall (淘宝商城, later Tmall.com), an online retail platform to complement the Taobao C2C portal, offering global brands to an increasingly affluent Chinese consumer base. It became

9632-427: The offering, it is estimated that with the level of demand for the offering and the volume of trading that took place they might have left upwards of $ 200 million on the table. The danger of overpricing is also an important consideration. If a stock is offered to the public at a higher price than the market will pay, the underwriters may have trouble meeting their commitments to sell shares. Even if they sell all of

9744-405: The open market, investors holding large blocks of shares can either sell those shares piecemeal in the open market or sell a large block of shares directly to the public, at a fixed price , through a secondary market offering . This type of offering is not dilutive since no new shares are being created. Stock prices can change dramatically during a company's first days in the public market. Once

9856-450: The outcome of disputes on the platform. This decentralized approach was popular and similar mechanisms were adopted or experimented with by other e-commerce platforms in China. On 11 June 2014, Alibaba launched US shopping site 11 Main. The 11 Main marketplace hosts more than 1,000 merchants in categories such as clothing, fashion accessories and jewelry as well as interior goods and arts and crafts and it plans to keep adding more, said

9968-401: The physical delivery of the stock certificates to the clearing agent bank's custodian or a delivery versus payment (DVP) arrangement with the selling group firm. "Stag profit" is a situation in the stock market before and immediately after a company's initial public offering (or any new issue of shares). A "stag" is a party or individual who subscribes to the new issue expecting the price of

10080-653: The previously private company: There are several disadvantages to completing an initial public offering: IPO procedures are governed by different laws in different countries. In the United States, IPOs are regulated by the United States Securities and Exchange Commission under the Securities Act of 1933 . In the United Kingdom, the UK Listing Authority reviews and approves prospectuses and operates

10192-536: The prices for which partes were sold, the nature of initial public offerings, or a description of stock market behavior. Publicani lost favor with the fall of the Republic and the rise of the Empire . In the United States, the first IPO was the public offering of Bank of North America around 1783. When a company becomes publicly listed, the money paid by the investing public for the newly issued shares goes directly to

10304-465: The process such as banking and legal fees, and the ongoing requirement to disclose important and sometimes sensitive information. Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document known as a prospectus . Most companies undertake an IPO with the assistance of an investment banking firm acting in the capacity of an underwriter. Underwriters provide several services, including help with correctly assessing

10416-512: The quiet period, the shares cannot be offered for sale. Brokers can, however, take indications of interest from their clients. At the time of the stock launch, after the Registration Statement has become effective, indications of interest can be converted to buy orders, at the discretion of the buyer. Sales can only be made through a final prospectus cleared by the Securities and Exchange Commission. The final step in preparing and filing

10528-413: The registration statement effective. During this time, issuers, company insiders, analysts, and other parties are legally restricted in their ability to discuss or promote the upcoming IPO (U.S. Securities and Exchange Commission, 2005). The other "quiet period" refers to a period of 10 calendar days following an IPO's first day of public trading. During this time, insiders and any underwriters involved in

10640-549: The same price. Both discriminatory and uniform price or "Dutch" auctions have been used for IPOs in many countries, although only uniform price auctions have been used so far in the US. Large IPO auctions include Japan Tobacco, Singapore Telecom, BAA Plc and Google (ordered by size of proceeds). A variation of the Dutch auction has been used to take a number of U.S. companies public including Morningstar , Interactive Brokers Group , Overstock.com , Ravenswood Winery, Clean Energy Fuels, and Boston Beer Company . In 2004, Google used

10752-466: The settlement was the case of CSFB and Salomon Smith Barney , which were alleged to have engaged in the inappropriate spinning of "hot" IPOs and issued fraudulent research reports in violation of various sections within the Securities Exchange Act of 1934 . A company planning an IPO typically appoints a lead manager, known as a bookrunner , to help it arrive at an appropriate price at which

10864-414: The shares should be offered. There are two primary ways in which the price of an IPO can be determined. Either the company, with the help of its lead managers, fixes a price ("fixed price method"), or the price can be determined through analysis of confidential investor demand data compiled by the bookrunner (" book building "). Historically, many IPOs have been underpriced. The effect of underpricing an IPO

10976-419: The stock to rise immediately upon the start of trading. Thus, stag profit is the financial gain accumulated by the party or individual resulting from the value of the shares rising. This term is more popular in the United Kingdom than in the United States. In the US, such investors are usually called flippers, because they get shares in the offering and then immediately turn around " flipping " or selling them on

11088-454: The store chain private. Alibaba's stake—28% from 2014's US$ 692 million investment—would rise to about 74% after the deal. In April 2014, Alibaba invested in Lyft, along with Coatue Management , and Andreessen Horowitz ; they led a US$ 250 million Series D financing round. On 5 June 2014, Alibaba bought a 50% stake of Guangzhou Evergrande F.C. from Evergrande Real Estate Group Ltd. in

11200-419: The suspension "forms part of a wider political drive as the leadership seeks to widen and consolidate its control over finance and technology". What followed was an unexpected Chinese government-released draft on 10 November 2020, which gives regulatory authorities a wider latitude to regulate their biggest tech enterprises. In December 2020, the shares of Alibaba Group suffered a historic stock price crash to

11312-524: The total amount of the IPO to $ 25 billion. Alibaba and the underwriters of its IPO were sued in a California superior court in a consolidated class action lawsuit. The lawsuit was filed in October 2015 on behalf of investors who purchased Alibaba's American depositary shares alleging violations of the Securities Act . Alibaba reached a settlement agreement in December 2018, subject to court approval, in which it agreed to pay $ 75 million to settle

11424-447: The underpricing of IPOs is less a deliberate act on the part of issuers and/or underwriters, and more the result of an over-reaction on the part of investors (Friesen & Swift, 2009). One potential method for determining to underprice is through the use of IPO underpricing algorithms . Other researchers have discovered that firms with higher revenues from licensing-based technology commercialization exhibit greater IPO underpricing, while

11536-399: The underwriters. A licensed securities salesperson ( Registered Representative in the US and Canada) selling shares of a public offering to his clients is paid a portion of the selling concession (the fee paid by the issuer to the underwriter) rather than by his client. In some situations, when the IPO is not a "hot" issue (undersubscribed), and where the salesperson is the client's advisor, it

11648-517: The value of shares (share price) and establishing a public market for shares (initial sale). Alternative methods such as the Dutch auction have also been explored and applied for several IPOs. The earliest form of a company which issued public shares was the case of the publicani during the Roman Republic , although this claim is not shared by all modern scholars. Like modern joint-stock companies,

11760-405: The viewpoint of the investor, the Dutch auction allows everyone equal access. Moreover, some forms of the Dutch auction allow the underwriter to be more active in coordinating bids and even communicating general auction trends to some bidders during the bidding period. Some have also argued that a uniform price auction is more effective at price discovery , although the theory behind this is based on

11872-523: The world's largest and most popular online retail marketplaces, achieved a total transaction volume of 3 trillion yuan (US$ 478.6 billion). The company aims to double the transaction volume to 6 trillion yuan by 2020. As of February 2018 , Taobao reached 580 million monthly active users , while Tmall achieved 500 million monthly active users. It is also rapidly expanding its e-commerce network abroad. Alibaba has also announced that it will invest 100 billion yuan over five years to build

11984-469: Was announced as one of the alliance partners of Prince William 's Earthshot Prize to find solutions to environmental issues. In March 2020, in response to the coronavirus pandemic , the Jack Ma Foundation announced its intention to donate a total 500,000 testing kits and 1 million masks to the United States, stating "we join hands with Americans in these difficult times". The Foundation, along with

12096-530: Was designed by T-Head and DAMO Academy (Alibaba's research team). Alibaba claim it is capable of 78,563 images per second (IPS) inference and 500 IPS/W in ResNet-50. The Hanguang 800 will be available to be rented on Alibaba Cloud. Initial public offering An initial public offering ( IPO ) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO

12208-420: Was estimated to be ¥1.5 billion (US$ 235.7 million), which was only about 0.4 percent of their total sales figure of ¥400 billion (US$ 62.9 billion) that year, way below the industry average of 2 percent, according to iResearch estimates. According to Zhang Yu, the director of Taobao, between 2011 and 2013, the number of stores on Taobao with annual sales under ¥100 thousand increased by 60%;

12320-513: Was not done by auction but rather at a share price set by the issuing corporation. In this sense, it is the same as the fixed price public offers that were the traditional IPO method in most non-US countries in the early 1990s. The DPO eliminated the agency problem associated with offerings intermediated by investment banks. The sale (allocation and pricing) of shares in an IPO may take several forms. Common methods include: Public offerings are sold to both institutional investors and retail clients of

12432-448: Was overseas. In September 2023, Cainiao Smart Logistics Network Ltd., the logistics arm of Alibaba Group, has filed for its Hong Kong initial public offering, potentially making it among the first of the Chinese e-commerce leader's units to go public. The key trends for Alibaba are (as at the financial year ending March 31): Alibaba is viewed by the Chinese government as one of its national champion corporations. Alibaba supplies

12544-446: Was said to have placed the head of Alibaba Group, Jack Ma—who was described as having been furious over the scandal—in a position to personally fight to win back trust. In 2013, Alibaba and six large Chinese logistics companies (including SF Express) established a company called Cainiao for delivery of packages in China. This network gradually grew to 14 local logistics companies in 2014. In 2016, Alibaba's Taobao and Tmall , two of

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