Alibaba.com had its initial public offering today, Saturday, October 27, and is expected to start trading on the Hong Kong Stock Exchange on November 6. They raised $1.5 billion.
Alibaba is the huge Chinese e-commerce company, which has four divisions: Alibaba International [importer to smaller size China business exchange], Alibaba China [subscription fee product postings], TaoBao [consumer to consumer exchange], and AliPay [online payment service].
However, if you don't have access to the Hong Kong Stock Exchange, you can invest in a company that has a large (39%) holding in Alibaba Group which is the parent company of Alibaba.com. That company is Yahoo (YHOO) which also bought approximately $100 million of Alibaba.com IPO shares.
Hi, Far as I know, "TaoBao [consumer to consumer exchange], and AliPay [online payment service]" these 2 assets are not injected in this IPO stock. that made the stock much less appealing.
Have you really done the math on that? Yahoo owns 40% of a company valued at the time it bought in at $2.5 billion. Even if Alibaba triples, that adds "only" 2 billion to Yahoos balance sheet. Given Yahoo's $45 billion market cap I suppose that's worth 3 or 4 bucks a share. It's already gone up that much since the recent IPO's news.
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