Alibaba shares almost triple on debut
November 7, 2007 – 1:43 am
The shares of the e-commerce company Alibaba.com almost tripled on the first day of trading, November 06 2007 . It was an great start for the world’s largest initial public offering by an e-commerce company since Google Inc.
The initial price for the share was HK$13.50. At the end of the day it soared up to an incredible HK$39.50. The shares had a high of HK$39.95 on this day. The great start shows the demand for shares in the internet market.
Then there is nothing to wonder about. The Chinese Internet is exploding at the moment. The Chinese population is more than 1,300,000,000 according to worldfactbook. Only about 10% of them have internet access. Daily thousands of new users join. This shows, that the Chinese internet economy WILL grow. Seems like more people have to discovered, it is possible to make money on the internet. Especially it is possible to make money with Your personal blog.
At the same time there are not very much investment options for the Chinese people. Investing in shares is one of the few options availiable. So the people either invest in shares or leave their money at home.
The number of applications for shares in the Hangzhou-based company exceeded the number of shares available by 256 times. At its IPO price of HK$13.50, the share was valued at 106.3 times 2007 earnings.
Damn, I really should have invested and become as rich as all those Hongkong millionaires.
