Sing Post

Sing Post: To benefit from upcoming Alibaba IPO? On Friday, Chinese e-commerce giant Alibaba unveiled plans for an IPO that values the company at US$155b, which would instantly make it one of the largest listed in the US and mark one of the biggest stock-market debuts ever. According to the Wall Street Journal, Alibaba’s offering has ignited excitement among some analysts and investors, who see in it an entree to China's exploding consumer market. Alibaba is far more profitable than many of its American Internet counterparts, generating 43% operating profit margins in the second quarter of 2014. Amazon broke even in that period—a 0% operating margin. Singapore company SingPost is now linked to the e-commerce giant after the latter’s 10% stake of SingPost three months ago in June, making Alibaba its second largest shareholder. Both companies are also looking at an e-commerce logistics venture, allowing SingPost to benefit from Alibaba’s network and platform. Hence, SingPost investors have their eyes on Alibaba’s IPO, which may be a catalyst for share price moves in SingPost shares.