IPO: Will Alibaba capture market’s 40 thieves?

May 11, 2014

I’m fascinated with the forthcoming IPO of Chinese ecommerce giant Alibaba for one, and one reason only. It has the name from my favorite childhood folk tale “Ali Baba and the Forty Thieves.” 🙂

I read that story (among many others) innumerable times and the wonderland of that treasure-cave of 40 thieves captivated my imagination.

Now I know that treasure-cave is real and exists.

In stock markets 🙂 🙂

The greedy thieves got punished in that story and hard working, poor and honest Alibaba got the treasure.

The modern Alibaba, this time from China, has filed registration paper for its IPO in the U.S. The scenario has also changed stock markets instead of ancient treasure-land.

Will Alibaba conquer the greedy “thieves” of stock markets this time too?

That’s the billion dollar question keeping stock markets investors and traders on the edge of their seats.

Alibaba group started in 1999 with the website www.alibaba.com, a business-to-business portal. Its success saw launch of a consumer-to-consumer portal Taobao.com .More success followed and gave birth to an online payment service Alipay and Aliexpress.com, an online retail service mostly for small seller.

Right now, the exact size of this IPO has not been disclosed and Alibaba has kept a place holder of $1 billion in its filing papers. But analysts are predicting it to be somewhere in the range of $170 billion to $250 billion, making it the biggest IPO ever in the history of U.S. markets.

The exact date of Alibaba’s listing on markets is still months away as legal and other processes will take time.

Yahoo, that has a stake in Alibaba, tumbled in share market last week as rumors swirled in markets that the tech giant might not have as big a stake in Alibaba as have been speculated till now.

With Alibaba’s filings, the IPO frenzy has started picking up in U.S. markets once again. The good thing is, not only tech industry but smaller companies from various other sectors are also lining up at the IPO doors. Is it a sign of improving economy? Will it create more jobs and lead to an increase in labor market? Is that why U.S. markets are holding on at high levels and refusing to correct because undercurrents in markets are showing improvement in economic and employment scenario in various industries?

We’ll keep a watch on new IPO activities in the U.S. markets  (among various other things) and bring you the latest information about these treasure troves in stock markets 🙂

Stay tuned!

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