Initial Pub

lic Oferin
g (IPO) of
Alibaba G
roup Hold
ing Limite
(NYSE: BA
d
BA)
&
Borderfree
, Inc. (NAS
DAQ:
BRDR)
Presented
By:
ABD SYAF
IQ BIN AB
D RAZAK
SYAIFUL A
(G131776
SYRAF BIN
5)
A
H
AMIDI (G1
NUR ATIQ
3
17817)
AH BINTI Y
AHAYA (G1
318226)

Introduction
IPO
a.k.a going public
A place where company first sell its stock
to institutional investors before trading
the stocks in exchange for the purpose of
financing.

E-Commerce
A type of business that allows
companies to do transaction through
internet network.
Alibaba and Borderfree: The platform
like Amazon & eBay

Alibaba Group Holdings Limited

(NYSE: BABA)
On Friday, September 19, 2014, Alibaba
Group Holding Ltd.s initial public offering
became the biggest ever at $25 billion, after
the companys bankers exercised an option to
boost the deal size by 15%. Including the
greenshoe, Alibaba was able to surpass the
current IPO record held by Agricultural Bank of
China Ltd.s $22.1 billion sale in 2010.
- by Leslie Picker and Lulu Yilun Chen
(http://www.bloomberg.com/news/articles/2014-09-22/alibaba-s-bankssaid-to-increase-ipo-size-to-record-25-billion)

Company Background
0 A Chinese e-commerce company that provides C2C,

B2C, and B2B sales services via web portals.

0 Provides electronic payment services, a shopping search

engine and data-centric cloud computing services.

0 Founded by 18 people, including Jack Ma in March 1999

through the website Alibaba.com, a B2B portal to

connect Chinese manufacturers with overseas buyers.
0 Started with a collective fund of US$60,000.
0 Other products under this group: Taobao Marketplace,

Alipay.com, AliExpress.com, Alibaba Cloud Computing, etc.

Objectives of IPO
The net proceed from IPO will be used for:
0 To be used for general corporate purposes.
0 To invest any pending net proceedings in
short-term interest bearing debt instruments
or bank deposits.
0 To expand business within and outside home
country.

IPO Details
ITEMS
IPO Date
Ofer Price
Ofer Shares
Overallotment
Option
1st Day Closing
Price

DETAILS
18/9/2014
US$68.00 per American Depository Shares
(ADS)
320,106,100 ADS representing
320,106,100 ordinary shares, par value
US$0.000025 per ADS.
Up to an aggregate of 48,015,900
additional ADSs.
US$93.89 (Return: 38.07%)

Source: Excerpt from Alibaba Group Holding Ltd - BABA Prospectus

Underwriters
0 The IPO was managed by 35 underwriters.
0 Joint bookrunners and representative

underwriters of the IPO are as below:

UNDERWRITERS

NUMBER OF ADSs

Credit Suisse Securities (USA)

LLC

50,291,578

Deutsche Bank Securities Inc.

50,291,578

Goldman Sachs (Asia) L.L.C.

50,291,578

J.P. Morgan Securities LLC

50,291,578

Morgan Stanley & Co.

International plc

50,291,578

Citigroup Global Markets Inc.

25,145,798

Borderfree, Inc.
(NASDAQ: BRDR)
0 Borderfree, is an e-commerce company based in New York.
0 The company provide platform for company to do business

online.
0 Physical goods only. i:e apparels, handbag, jewelry, etc.
0 Not digital goods: services, etc.

0 Borderfree was founded in 1999, in Delaware and known as E4X

0 Initially, operated as a patented foreign exchange technology
solution that allowed e-commerce retailers to engage and settle
transaction in selected currencies with theirs global consumers.
0 Change to Fiftyone after introducing comprehensive online solution
0 Lastly to Borderfree after acquired by Canadian company, one of its
business unit

Objectives of IPO
0 Borderfree has decided to issue IPO on 24th March

2014. consist of 5 million common stock at a price

of $16 per share.
0 The net proceeds is mainly for financing and may
vary according to company objectives.
0 Grant option of 750,000 additional shares to
underwriters to purchase to cover over allotment.

IPO Details

Alibaba Performance Before

IPO
Revenue
40,000,000
30,000,000
CNY in thousands

20,000,000
10,000,000
0

2011

2012

2013

2012

2013

Net Income
10,000,000
8,000,000
6,000,000
CNY in thousands

4,000,000
2,000,000
0

2011

Alibaba Ratio

2011

2012

2013

Revenue Growth

15.46%

9503.33%

72.37%

Operating Margin

28.3%

25%

31.1%

Net Margin

26.69%

21.11%

24.35%

ROA

12.23%

8.96%

15.14%

ROE

25.91%

13.43%

53.42%

Current ratio

1.9

2.37

1.8

Payables Period

4.69

71.9

69.53

Receivables
Turnover

128.78

129.19

238.05

Borderfree Performance Before

IPO
Revenue
USD in thousands

120,000
100,000
80,000
60,000
40,000
20,000
0

2011

2012

2013

2012

2013

Net Income
8,000
6,000
USD in thousands

4,000
2,000
0
-2,000

2011

Borderfree Ratio

2011

2012

2013

Revenue Growth

121.19%

35.72%

Operating Margin

-3.2%

1.4%

-0.2%

Net Margin

1.29%

-0.07%

-0.59%

ROA

-0.1%

-1.01%

ROE

-7.74%

Current ratio

1.75

1.56

Payables Period

107.06

108.97

Receivables
Turnover

5.32

7.6

Alibaba Performance After

IPO

Borderfree Performance After

IPO

Stock Price After

IPO
Alibaba ($68)
Latest Price

$81.36

First day Price & return

$93.89 (38.1%)

Aftermarket Return

-13.5%

Return from IPO

19.4%

Borderfree ($16)
Latest Price

$6.55

First day Price & return

$20 (25%)

Aftermarket Return

-67.9%

Return from IPO

-59.9%

CONCLUSION