Showing posts with label alibaba IPO. Show all posts
Sunday 28 September 2014
Alibaba pays $459 million for stake in Chinese hotel tech company
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(Reuters) - Alibaba Group Holding Ltd, in its first big investment since raising $25 billion in a record-breaking New York initial public offering, has bought 15 percent of Chinese hospitality technology provider Beijing Shiji Information Technology Co Ltd for 2.81 billion yuan ($458.66 million).
The investment is expected to allow the e-commerce giant to develop its Taobao travel business alongside Beijing Shiji, including back-office services, while helping to migrate hotel customers to Alibaba's e-commerce website.
Beijing Shiji provides IT consulting to hotels in China's fast-growing market. It sells everything from software that manages room reservations, purchasing, inventory, and point of sales systems, to broadband networks and billing systems.
The Shenzhen Stock Exchange-listed firm says almost 6,000 hotels in China use its products, including 90 percent of the country's five-star hotels, according to Sunday's filing. Its customers include Grant Hyatt Hotels, Marriott International Inc, Westin Hotels and Resorts and Sofitel Luxury Hotels.
Alibaba's Taobao (China) Software unit agreed to purchase 54.55 million shares of the company for 51.52 yuan per share, Beijing Shiji disclosed in a regulatory filing on Sunday. The deal should close early next month. An Alibaba spokesman declined to comment.
Alibaba initially partnered with Beijing Shiji in an agreement announced on March 28. Beijing Shiji's shares have gained more than 46 percent since then.
Monday 22 September 2014
Alibaba IPO ranks as world's biggest after additional shares sold
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(Reuters) - Alibaba's initial public offering now ranks as the world's biggest at $25 billion, netting underwriters of the sale a more than $300 million windfall after the e-commerce giant and some shareholders parted with additional shares.
The fees are equivalent to 1.2 percent of the total deal, with Alibaba paying $121.8 million in commissions. Selling shareholders are set to pay another $178.6 million, according to a filing with the U.S. Securities and Exchange Commission on Monday.
Overwhelming demand saw the IPO initially raise $21.8 billion, and then sent Alibaba Group Holding Ltd's stock surging 38 percent in its debut on Friday. That prompted underwriters to exercise an option to sell an additional 48 million shares, a source with direct knowledge of the deal said.
That means the IPO has surpassed a previous global record set by Agricultural Bank of China Ltd in 2010, when the lender raised $22.1 billion.
According to its prospectus, Alibaba had agreed to sell 26.1 million additional shares under the option, and Yahoo Inc an additional 18.3 million, netting the two companies an extra $1.8 billion and $1.2 billion respectively.
Alibaba's Jack Ma had agreed under the same option to sell an extra 2.7 million shares and company co-founder Joe Tsai agreed to 902,782 additional shares.
The source declined to be identified as the details of the additional sale have yet to be made official.
Alibaba declined to comment.
Citigroup Inc, Credit Suisse Group AG, Deutsche Bank, Goldman Sachs Group Inc, JPMorgan Chase & Co and Morgan Stanley acted as joint bookrunners of the IPO.
Rothschild was hired as Alibaba's independent financial advisor on the deal.
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