阿里巴巴上市的 好处与风险.docVIP

The benefits and risks of Alibabas IPO Nowadays Chinese e-commerce giant Alibaba Group holding Ltd. has said that it has been considering to start the process for an initial public offering in the U.S.. This is expected to be one of the largest Internet IPOs in history because according to some insiders the IPO could raise more than $15 billion. However whether it is a good decision made by the management to bring a brighter future for Alibaba? The answer is not clear yet. So in this passage, I will give a brief analysis about its benefits and risks. Benefit Firstly in 2006 a contract was made between Alibaba and Yahoo. It clarified that if Alibaba does not start Initial Public Offering before 2015 it cannot get back a half of shares of the company owned by Yahoo. Moreover, Yahoo’ share is provided 24% of the whole in Alibaba while only 10% owned by the management. So getting back some shares from Yahoo will help consolidate the power of the management and meanwhile weaken shareholders rights to some extent. Secondly, making Alibaba listed in the U.S. means that it will come into the international stage. It will be soon recognized by overseas investors and investment corporates, which help enlarge its business scale and attract more partners. In fact, Alibaba rival, Tencent Holdings Ltd, is up roughly 10% since the beginning of 2014 in Hong Kong and has surged nearly 700% since it raised around US$200 million in its 2004 IPO. The same for Baidu, since its roughly US$4 billion IPO, it is now worth US$56.63billion. It is a reflection of the huge investor base in the U.S. covering fast-growing Chinese tech companies. On the other hand, Alibabas IPO will broaden its overseas market. It is reportedly looking to bring its e-commerce business to the U.S., increasing its investments in U.S.-based companies and launching an e-commerce site, 11 Main, where hand-picked shop owners connect with customers in a stylish and professionally merchandised marketplace. Thirdly, Aliba