Besides adhering to U.S regulation, Alibaba has been challenging tucson movie theaters the Chinese t

Alibaba is a Chinese e-commerce company which is referred to as China s version of Amazon or eBay. It mainly operates online shopping malls, Taobao and Tmall, for C2C transactions and B2C sales, together with an online payment tucson movie theaters platform, Alipay. Alibaba has announced an initial public offering in the U.S after negotiations with the HKSE were not successful. The U.S was able to fulfil Alibaba s requirement of having a partnership structure which involves partners, founder Mr. Ma and some senior executives, being able to nominate more than half of the board of directors even though the partners hold a combined stake of 10% in the company. Alibaba group is valued around $153 Billion and it is estimated that the IPO may be larger than the 2012 IPO of Facebook Inc. which raised $16 Billion, making it the biggest technology IPO ever. Alibaba also plans to buy back a portion of Yahoo s stake in the company once it goes public. Thus as the predicted IPO increases, it will become increasing more expensive for Alibaba to do so. Additionally, stalling tucson movie theaters the IPO any longer may hype up investor interest in the stock, further inflating its value and ultimately causing it to tank once it hits market; much like Facebook s IPO did last year. In anticipation for the Alibaba Group IPO, investment banks have been skipping certain clients- Alibaba s rivals or potential acquisition targets- so as to secure Alibaba s estimated $200+ million in fees total. Alibaba is in discussions with Citigroup, Credit Suisse, Deutsche Bank, JPMorgan, Goldman Sachs and Morgan Stanley for the underwriting roles. Investors are optimistic about the IPO as recent figures have indicated that Alibaba s revenue has risen around 50% over one year.
The equity raised through their IPO would also allow them to better compete with the second largest e-commerce company in China, behind Alibaba, JD.com. JD.com is also currently filling for a listing in the US for $1.5 billion and is being backed by Tencent Holdings Ltd, the company behind the popular messaging application WeChat and social networking service QQ. The funds raised will also allow for more aggressive growth and competition against foreign firms such as Amazon.
Alibaba has to comply to U.S regulation in order to launch the IPO. Alibaba operates the biggest online marketplace Taobao and Tmall which account for about 80% of online retail sales in China. With China being listed as one of notorious marketplace of counterfeit in 2013 USTR Special 301 Report, Alibaba shares the same characteristics. Alibaba has been criticized for several years as some individuals and businesses on Taobao and Tmall sell substandard products as fine product and fake replicas as real ones. Being loosely regulated in China does not imply the same treatment in a country with strict regulations on trade. Therefore Alibaba has to comply to U.S regulation and it is likely to bring itself numerous class action lawsuits if Taobao and Tmall resort to old habits.
Besides adhering to U.S regulation, Alibaba has been challenging tucson movie theaters the Chinese traditional banking and payment system with various services and products, for example the currency fund Yu e Bao and Alipay. Consequently, the company is under strict tucson movie theaters scrutiny tucson movie theaters and regularly being investigated by authorities. On 14 March 2014, The People s Bank of China (China s Central Bank) announced to terminating QR code and virtual credit card payment to prevent risks and fraud involved. The essence of Alipay payment is to transform normal credit card or debit payment to online transaction, indicating tucson movie theaters a transformation of low risk transactions to high risk ones. Such online transactions do not identify customer identity, tucson movie theaters have no transaction details recorded and no report for analysis, which may be utilised for illegal financial activities and make it hard to be investigated. Alibaba however, recently cooperated with the Central Bank in regards to this issue, in the hope that its payment system will meet regulatory standards. How the American authority will view Alibaba s online payment system is another problem that the company will need to quickly accommodate for.
As a giant e-commerce company, Alibaba benefits from its complicated connection within its subsidiaries and related companies. Shown in the firm s disclosed information, there are nine major systems tucson movie theaters within the firm, including: companies in China, companies offshore, B2B firms in China, B2B firms offshore, Ali Cloud, Ali finance, Taobao, Alipay and Yahoo. Within each of these systems, there are dozens of related companies or subsidiaries. Therefore, services and products provided by Alibaba are all related to some degree. For example, Tmall is a subsidiary of Taobao; both of them require Alipay to complete transactions, therefore their business transactions are continuously tucson movie theaters highly related. Consequently, Alibaba has to disclose information tucson movie theaters about these transactions to high level of detail to satisfy U.S regul