http://www.alibaba.com/ |
http://www.bbc.com/news/business-29057845
BIGGEST SHARE
SALE IN HISTORY
Alibaba, which is one of chinas biggest e-commerce company thats has teamed up with the chines telecoms `Huawai´ to offer a fingerprint reader app which did not succeed.
Therefore Alibaba sells 3/4 of shares on the overall market, which can be tracked down online. The shares could raise up $20 billion, which is better than the Facebook Initial public Offering of $16 billion in 2012, one of the biggest share sale up to now of an internet Company.
Alibaba has rounded up the double of market value of Facebook, which is currently at $100 billion which means that Alibaba lays at $200 billion.
This share sale id the hugest one that ever existed, the first place was up till then occupied of an record of $22.1 billion from the Agriculture Bank of China.
Alibaba Company in China |
The profit Margin is at 40% which decreases, because of an minimum commission that they take in from various websites. The company need to innovate and invest because its price earning ratio is at 50, which is based on the last years profit of $3.6 million.
What is to aspect of next weeks share sale, will it be number one of the hugest share sales in History.
The decisions to sell shares is a stragetegy and a change issue. They aim to make more profit in the Company.