Alibaba has largest IPO

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Alibaba raised the highest IPO in history last friday when the stock market opened. The company is expected to continue to have high earnings in the next fiscal year.

Alibaba Group Holding Limited, a Chinese e-commerce company, raised the largest initial public offering (IPO) of $25.8 billion in history last Friday.

Officials originally planned on raising a $21.8 billion IPO, but later increased the number . The share price was set at $68 each when the company first went public. Due to the high demand, it closed at $93.89.

“I think it’s incredible that something that was pretty small in China totally exploded,” Oisin Coveney (11) said.

Alibaba.com, the main branch of Alibaba group, is used by businesses to sell their manufactured goods. Other branches such as taobao.com and tmall.com are also used for retail.

Some students compared Alibaba to Amazon and eBay.

“I mean if it’s the same as Amazon and eBay I don’t really see any problems with it,” Mishi Vachev (12) said. “It should be a pretty effective way of selling goods.”

While Amazon sells directly to customers, Alibaba connects different buyers with outside sellers. Last quarter, it had a revenue of $2.54 billion.

“I’ve actually never really been on the site, here in the U.S. I use Amazon, but because Alibaba was so successful in its IPO, I definitely would like to check it out.” Alexis Gauba (10) said.

AliPay, the company’s payment system, is comparable to PayPal, a popular e-commerce business in the U.S. Both platforms allow buyers to securely send payments to third-party sellers online, but AliPay does not release the payment until the customer collects the item.

Jack Ma developed the company in 1999. Before becoming an entrepreneur, he received a bachelor’s degree in English from Hangzhou Normal University, and went on to teach English at Hangzhou Dianzi University.

“Jack Ma went from being an english teacher to being the CEO of a company that had the biggest U.S. IPO yet, so with entrepreneurship you can make it really big, it doesn’t necessarily matter if you have an M.B.A. or have gone to business school so I think thats very cool.” Alexis said.

Jane Keller was also impressed by Ma. She shared her opinion on what type of online business she would create.

“I would do something with helping teenagers,” she said. “It would have to do some kind of problem solving about social issues.”

Alibaba earned $3.7 billion in the last fiscal year, more than Amazon and eBay combined.