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This Document provides the History of Ali Baba Company and its financial position at the time of its IPO.
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All praise to the glorious Allah
Attiq Shah
Introduction E-COMMERCEE-commerce was introduced in China in 1993.
E-commerce market are influenced by govt. regulations, logistics
and payment systems.
Introduction E-COMMERCETrudy Dai used to spend all night sending e-mails from her friend Jack Ma’s apartment through Alibaba, an online listings service Mr. Ma, a teacher, had just started.
From 22.5 million users(1.7% of internet users of China) in 2000,
the usage rose to 162 million(12.3%of internet users)in 2007,and has
been growing continuously since then.
Introduction
All in OneBank
SearchEngine
Marketplace
Taobao MarketPlaceTmall.com JuHuaSuanAliTrip AliExpressAlibaba.com 1688.ComAliMama AliPayAliBaba Cloud Computing
Introduction
Introduction
Ali Baba -Country wise business Scenario (2008)
Country/Region Business(in %)USA 21
Europe 21
India 7
South east Asia 5
China 4
Hong Kong 4
Singapore and Malaysia 4
Canada 4
Australia 3
Others 27
Customer Driven Strategy
The first was that many Chinese are tight-fisted. So Alibaba made all the basic services it offers free to both buyers and sellers.
It earns money through online advertisements and extra services it offers clients, such as website design.
The second is that many Chinese are reluctant to trust strangers. So Alibaba has provided tools to build trust.
One is an independent verification service through which third parties vet the claims made by sellers; the sellers pay for the process. Another is the Alipay payments system.
Customer-relationship building
Vision
To Last 102 Years
To be one of the world’s top 10 Internet Sites
To be essential partner for all business people
Developments
1999
2000-2003
Case analysis•Raised money from Venture Capitalist•Platform for Trade – B2B•2 lac members at the end of year•Attracted other companies into e-Commerce•Stood hard in dotcom bubble
Dotcom Crash Advertising Revenue
Bankruptcy Mergers
Early 2001 – Alibaba offered AlibabiesLate 2001 – created a Community “China Suppliers”
Set a “Trustpass Membership ”
2004-2007
• Entry into C2C and B2C• Winning over eBay• Yahoo! china Acquisition
Developments
1999
2000-2003
ObjectivesGather Work ForceBuild Customer BaseEstablish Brand Name
Withstand Dotcom BurstConsolidate Firms Position
Image BuildingRetain Employees
2004-2007
Expansion within ChinaGlobal PresenceBetter Revenue Model
Developments
1999
2000-2003
FinanceDebt Fund Raising
Venture CapitalistSoft Bank
Revenue ModelSelling of Advertising Space
Charging of Membership
2004-2007
Debt Leverage ConceptMerger and AcquisitionExpansion of revenue Model
Waseem Akbar
Assets
• Total Assets of Ali Baba = $17.94 billion• Total Current Assets = $ 10.78 billion• Total Fixed Assets = $ 7.16 billion• Revenue = $8.58 billion• Net Income = $3.81 billion• Interest Expense = $358.53 million
For the year 2013-14
How it stands with the competitors?
Data fetched from www.nasdaq.com (Stock Exchange)
2012-13 2013-14 2012-13 2013-14 2012-13 2013-14
Revenue $5.5B $8.58B $74.45B - $16.05B -
Net Income $1.36B $3.81B $274M - $2.86B -
Total Assets $10.27B $17.94B $40.159B - $41.49B -
Total Current Assets $6.95B $10.78B $24.625B - $23.28B -
Ali Baba Amazon eBay
Data fetched from www.nasdaq.com (Stock Exchange)
Ratio Analysis of AliBaba
Balance Sheet Some Elements ofIncome Statement
Assets
Current Assets other than Inventories
Inventories
Total Current Assets
Non-Current Assets
Total Assets
LiabilitiesCurrent LiabilitiesNon-Current LiabilitiesTotal Liabilities
O.E
Common EquityOther O.E
Total O.E
Total L+O.E
$10.78B
0
$10.78B
$7.16B
$17.94B
$6.01B
$5.36B
$11.37B
$4.72B
$1.84B
$6.56B
$17.94B
Sales $8.58B
Net Income $3.81B
Website to Visit!
http://www.macroaxis.com/invest/market/1688.HK--fundamentals--Alibabacom_Limited
For ratio analysis!
Other Things
• Beta = 0.0395• Altman’s Z-Score = 2 Criteria for Altman Z-Score:
1. z > 2.99 (Safe)
2. 1.8 < z < 2.99 (Grey)
3. z < 1.8 (Red)
Muhammad Hussain
• Who is an underwriter?
• What is an IPO?
• What is Secondary Public Offering?
When did the world see its first IPO?
Ali Baba’s IPO
• AliBaba raised $25 Billion (Pakistani: Rs.25 Arab) = 10 Mian Manshas
• Initial expected price: $60-$66
• IPO on $68
• IPO on 18th September, 2014
• Biggest IPO so far
• Broke the record of Agricultural Bank of China ($22.1 Billion)
• Underwriters earned $300 Million
• Out of which $121.8 million was to be paid by AliBaba and $178.6 by Shareholders
• Stock price on 24th November, 2014: $112.15 (10.15 pm. Pakistani time)
• Authorized shares = 320.1 million
• Issued shares = 123.1 million
• They had supposed to raise $8.371 Billion with $68 per share
• But, they actually raised $25 Billion
Market Share
Potential of E-Commerce in China
A Chance for AliBaba
Waseem Akbar
To Close it All!
The Great Jack Ma
Thank you
