Alibaba IPO Magic (Group 1 – MSc/M2 FMI)

 The Chinese e-commerce giant IPO

Order imbalances over the intensely hyped, widely sought Alibaba IPO delayed initial trading. Nearly 2 1/2 hours later, American depositary shares of Alibaba Group Holding Ltd., priced at $68, opened at $92.70 at 11:53 a.m. ET. Shares quickly jumped to $99.70 before ending the day at $93.89.

More than 100 million shares traded within 20 minutes of its delayed open and over 271 million shares exchanged hands by the market’s close. Early indications had shares opening at $80 to $83, but demand was so strong, the offering price had to be hiked 10 times.

Scott Cutler, NYSE’s global listings chief, said the IPO was repeatedly delayed by massive order imbalances. “We’ve got hundreds of thousands of orders,” Cutler told CNBC after an hour-long delay. “We’re chasing to find sellers. Even at these levels, there doesn’t appear to be a lot of sellers.” 

The IPO raised $21.8 billion, surpassing the $17.8 billion raised by credit card marketer Visa’s 2008 IPO and Facebook’s $16 billion IPO in 2012. Alibaba’s IPO falls just short of the record $22 billion raised in Hong Kong and Shanghai by Agricultural Bank of China’s 2010 stock offering. But given Friday’s demand, Alibaba’s underwriters could add additional 40 million shares, bringing the IPO to $25 billion. At current price levels, Alibaba’s $231 billion market capitalization is greater than blue-chip giants IBM, Procter & Gamble and General Electric.

Alibaba’s business model – unlike other young Internet-focused companies with more prospects and buzz than actual earnings and revenue growth – created swelling demand for its shares. A holding company that combines the sales, merchandising and financial services reach of Amazon, eBay and PayPal, Alibaba had revenue of $8.5 billion in its last fiscal year, up from $5.5 billion in 2013. Revenue for the second quarter ended June 30 jumped 46% to $2.53 billion and net income jumped 137% to $2 billion.

Japanese wireless carrier SoftBank,an early Alibaba investor,which provided the then-startup with $20 million in 2000, has a 37% stake in Alibaba that could be worth more than $60 billion. Yahoo! could eventually be among Friday’s biggest Alibaba winners, but shares slumped nearly 7% in early trading before ending the day down 2.7% to $40.93. The company has previously said it plans to unload about 5% of its 22.4% Alibaba stake.




Group 8 @IB Raleigh – Globalization 2014-2030: how will it impact your gameplan ?

Globalization is the process by which economies, societies and cultures have become interconnected. This translates into an increasing flow of goods, services, but also people and knowledge. When we raise the issue of globalization and employment, themes such as threat to job security, downsizing to remain competitive often come up. If globalization will definitely affect our career, we have a different perspective than the one previously exposed.

Our group is composed of six people and four different nationalities : French, Moroccan, Spanish and Russian. We are all international students, who are studying on the Raleigh campus and think, globalization will have a positive impact throughout our career. In fact, the world around us today has become integrated : mobility has significantly increased and barriers have diminished. While our parents only considered working in their home country, we have the ability to market the entire world. Moreover, our study abroad experience provides us with a global experience. Not only do we study in a foreign country, but we confront new, unfamiliar situations daily. Globalization has shaped each and every field of employment and companies need people, who are able to understand such an environment and manage it.
However, if globalization offers us new possibilities, it does the same for other international students and employees. To turn these new possibilites into opportunities, we need to stay ahead of the game. Globalization pushes us to keep learning and developing our skills and what makes us unique in the job market. In our case, we can mention mastering at least two languages, our ability to adapt and be flexible.

As global citizens, globalization represents a great opportunity for us, as long as we are able to act global while keeping what makes us unique.

Pankaj Ghemawat ‘s viewpoint!


There seems to be two leading views of globalization: either that it is done and the world is flat (T. Friedman) or that it has led to a world dominated by corporations (Naomi Klein). Pankaj Ghemawat’s  most recent book, World 3.0,  explores the true face of globalization–and shows that the world is not one vast uniformed market, but many small, interconnected, discrete entities, with varying degrees of openness to one another. Even the most open economies are still relatively closed. We live in a world of semi-globalization at best. Ghemawat also refutes the assumption that globalization leads to homogeneization!?