So who's making da $$$ with da Alibaba?
- Thread starter Kiopa_Matt
- Start date
Why a Chinese Company Is the Biggest IPO Ever In the US - Slashdot
This made for interesting reading, especially some of the comments. Looks like the investors just bought into a Cayman island company to get around China's company ownership rules. Hong Kong stock exchange also declined to list the shares because it was structured in a rather "innovative" way. I'm sure some people made bank, namely the middlemen who bought at $68 and turned instantly into $90+ per share. Good luck trying to audit a Chinese company.
One good suggestion in the comments: If an IPO is to raise capital for the company, surely it's better to start it high at say $200 per share and then slowly drop down 1% until all the shares are allocated to get the best price for each.
This made for interesting reading, especially some of the comments. Looks like the investors just bought into a Cayman island company to get around China's company ownership rules. Hong Kong stock exchange also declined to list the shares because it was structured in a rather "innovative" way. I'm sure some people made bank, namely the middlemen who bought at $68 and turned instantly into $90+ per share. Good luck trying to audit a Chinese company.
One good suggestion in the comments: If an IPO is to raise capital for the company, surely it's better to start it high at say $200 per share and then slowly drop down 1% until all the shares are allocated to get the best price for each.
That's not how IPO's work and would never work like that. Here's a great talk on the topic from the founder of Yelp:
Stanford's Entrepreneurship Corner: Geoff Donaker, Yelp - The Road to IPO