Sunday, 22 September 2019

Jun 22, 2019: Alibaba Stock Increases After Proposing Stock Split

Alibaba is China’s biggest online commerce company. It has 3 main sites: Taobao, Tmall and They have hundreds of millions of users. Transactions on its online sites totaled $248 billion last year, more than those of eBay and combined. 80% of China’s online shopping market is dominated by Alibaba. Alibaba certainly became a valuable tech company after raising $25 billion from its U.S. IPO. It is also a valuable Chinese public company. Taobao is Alibaba's biggest shopping site. Sellers can pay for ads.

Alibaba Group Holding (ticker: BABA) has proposed a stock split that will increase the number of shares available at a lower per-share price. The split was supposed to increase flexibility in the company’s capital raising activities, including the issuance of new shares. The stock split would break 1 current Alibaba share into 8. Alibaba stock rose 1.1% Monday morning to $159.90. This means the company will likely proceed with a 2nd listing in Hong Kong later this year. A Hong Kong listing would bring Alibaba’s shares closer to investors at home, who are more familiar with the company.

No comments:

Post a Comment