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| Alibaba Seeks Investors, May Hit Record |
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Alibaba handles around 80 percent of on-line commerce
by China's more than 600 million Internet users.
Headed by Jack Ma,
the firm profits from transaction fees,
and payments from advertisers
who want to reach its rapidly-growing throngs of customers.
Alibaba also has a payment system
that can replace credit cards
for some purchases.
The head of a company
that sells business information
to firms doing business around the world,
says Alibaba is set to grow more
and even faster.
Panjiva's Josh Green spoke via Skype.
"As you look at the next, you know, 10-20 years,
there is no question
that we are gonna see the rise
of a really powerful, really vibrant middle class in China.
And there is no company
that is better positioned
to benefit from that rise of the Chinese middle class
than Alibaba."
Alibaba's Jack Ma could use the money
raised by the IPO
to reward people
who backed the firm in its early days
and to expand operations.
Alibaba can continue to expand in China,
and has made overseas investments
that could aid international expansion.
But a new poll
by Reuters and Ipsos
shows most Americans have never heard of Alibaba.
Green says growing globally means
Alibaba would have to build
the kind of connections, brand recognition, and trust
that have helped the firm in China.
Experts say Alibaba has a corporate structure
that gives shareholders less influence over the firm
than is normal in a publicly held company.
A University of Michigan business professor
says investors will need to exercise the same caution
with this company
as they would with any investment
in an emerging market like China.
Alibaba's top executives have met
with major investors around the world
to make a case for their company.
That may be why
concerns about the firm are not hurting demand
for Alibaba shares
before they formally go on sale.
Reports in the financial press say
so many investors want to own part of this company
that managers of the IPO are raising the price.
Jim Randle, VOA News, Washington |
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