The largest IPO in the history of the US markets is being fueled by new economic forces in China
The largest IPO in the history of the US markets is being fueled by new economic forces in China. Alibaba Group, China's largest e-commerce company, announced it will offer 320.1 million American depositary shares priced between $60 and $66, making it the largest ever US public offering. From an initial investment of $20 million in 2001 the listing of Alibaba will value the business at over US$160 billion. Analysts point at two major trends driving this staggering growth. 1) The emergence of a growing middle class: By 2070, more than 70% of China's population could be considered middle class and could consume almost $10 trillion in goods and services. 2) A population moving online: The growing number of Internet users is a major driver for Alibaba, more than 850 million Chinese are expected to be online by next year. This article shows a visual timeline of the story. (VIEW LINK)
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