BUSA 645 Week 4 Assignment Help

BUSA 645 Week 4  Assignment Help | Abilene Christian University

BUSA 645 Week 4 Assignment 2: Case Study: Alibaba’s Record-Setting IPO

·         Case Study: Alibaba’s Record-Setting IPO 

o    Read the following case study from Ch. 12 of the International Business text concerning Alibaba’s Record-Setting Initial Public Offering, (IPO):

The case explores the $231 billion initial public offering of Chinese e-commerce company Alibaba. Initially, Alibaba considered making an IPO in Hong Kong, but concerns over a rule that would cause founder Jack Ma and his colleagues to lose ownership control of the company caused them to turn to the New York Stock Exchange. The decision proved to be beneficial for Alibaba, and the IPO drew enormous interest from investors. When it launched on September 18, 2014, Alibaba’s IPO was the largest in history.

o    Answer the following questions in 250-500 words each:

1.      Why did Alibaba’s owners decide to take the company public? What benefits did the decision offer the company?

2.      Why did Jack Ma decide to list his company on the New York Stock Exchange (NYSE) rather than in Hong Kong? Was it a good decision for his company?

3.      Why did Alibaba attract so much interest from investors? Should investors expect to earn significant profits from shares in Alibaba? Why or why not?

o    Another Perspective: For more information on Alibaba’s historic IPO, review the following:

NYSE (2014). Alibaba lists on the NYSE. New York Stock Exchange. Retrieved from: https://www.nyse.com/network/article/Alibaba-Lists-on-the-NYSE