Initial Public Offering of Alibaba Group Holding Limited (NYSE: BABA) & Borderfree, Inc. (NASDAQ: BRDR)

Initial Public Offering (IPO) of Alibaba Group Holding Limited (NYSE: BABA)&Borderfree, Inc. (NASDAQ: BRDR)Presented By:ABD SYAFIQ BIN ABD RAZAK (G1317765)SYAIFUL ASYRAF BIN AHAMIDI (G1317817)NUR ATIQAH BINTI YAHAYA (G1318226)IntroductionAlibaba 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-banks-said-to-increase-ipo-size-to-record-25-billion)Company BackgroundA Chinese e-commerce company that provides C2C, B2C, and B2B sales services via web portals.

Provides electronic payment services, a shopping search engine and data-centric cloud computing services.

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.Started with a collective fund of US$60,000.Other products under this group: Taobao Marketplace, Alipay.com, AliExpress.com, Alibaba Cloud Computing, etc.Objectives of IPOThe net proceed from IPO will be used for:To be used for general corporate purposes.To invest any pending net proceedings in short-term interest bearing debt instruments or bank deposits.To expand business within and outside home country.IPO DetailsITEMSDETAILSIPO Date18/9/2014Offer PriceUS$68.00 per American Depository Shares (ADS)Offer Shares320,106,100 ADS representing 320,106,100 ordinary shares, par value US$0.000025 per ADS.Overallotment OptionUp to an aggregate of 48,015,900 additional ADSs.1st Day Closing PriceUS$93.89 (Return: 38.07%) Source: Excerpt from Alibaba Group Holding Ltd - BABA Prospectus

UnderwritersThe IPO was managed by 35 underwriters.Joint bookrunners and representative underwriters of the IPO are as below:

UNDERWRITERSNUMBER OF ADSsCredit Suisse Securities (USA) LLC50,291,578Deutsche Bank Securities Inc.50,291,578Goldman Sachs (Asia) L.L.C.50,291,578J.P. Morgan Securities LLC50,291,578Morgan Stanley & Co. International plc50,291,578Citigroup Global Markets Inc.25,145,798Borderfree, Inc. (NASDAQ: BRDR)Borderfree, is an e-commerce company based in New York.The company provide platform for company to do business online.Physical goods only. i:e apparels, handbag, jewelry, etc.Not digital goods: services, etc.

Borderfree was founded in 1999, in Delaware and known as E4XInitially, 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. Change to Fiftyone after introducing comprehensive online solutionLastly to Borderfree after acquired by Canadian company, one of its business unit

Objectives of IPOBorderfree has decided to issue IPO on 24th March 2014. consist of 5 million common stock at a price of $16 per share.The net proceeds is mainly for financing and may vary according to company objectives. Grant option of 750,000 additional shares to underwriters to purchase to cover over allotment.

IPO Details

Alibaba Performance Before IPO201120122013Revenue Growth15.46%9503.33%72.37%Operating Margin28.3%25%31.1%Net Margin26.69%21.11%24.35%ROA12.23%8.96%15.14%ROE25.91%13.43%53.42%Current ratio1.92.371.8Payables Period4.6971.969.53Receivables Turnover128.78129.19238.05Alibaba RatioBorderfree Performance Before IPO201120122013Revenue Growth121.19%35.72%Operating Margin-3.2%1.4%-0.2%Net Margin1.29%-0.07%-0.59%ROA-0.1%-1.01%ROE-7.74%Current ratio1.751.56Payables Period107.06108.97Receivables Turnover5.327.6Borderfree Ratio

Alibaba Performance After IPO

Borderfree Performance After IPOAlibaba ($68)Latest Price$81.36First day Price & return$93.89 (38.1%)Aftermarket Return-13.5%Return from IPO19.4%Borderfree ($16)Latest Price$6.55First day Price & return$20 (25%)Aftermarket Return-67.9%Return from IPO-59.9%Stock Price After IPOCONCLUSION