What explains Alibaba's miraculous IPO success on the New York stock exchange?. Issue 2 (15th March 2023)

• Record Type: Journal Article
• Authors: Wei, Kailei; Xiao, Libo; Fang, Yang; Jiang, Chunxia
• Is Part Of: Asia Pacific business review. Volume 29:Issue 2(2023)
• Page Start: 299
• Page End: 322
• Publication Date: 2023-03-15
• Subjects: Alibaba -- China -- institutional environment -- overseas IPO; Asia -- Commerce -- Periodicals; 338.095
• DOI: 10.1080/13602381.2022.2143640
• Languages: English
• ISSNs: 1360-2381

Abstract

ABSTRACT: Shattering the all-time high record of $68.15 billion set by AT&T in April 2000, Alibaba became the world's largest IPO, raising $169.4 billion at the New York Stock Exchange in September 2014. Using this outstanding case, the underlying drivers for foreign IPO success were explored. Four propositions are elaborated on: (1) companies choose the capital market with the institutional environment accommodating their internal characteristics, thereby taking advantage of the institutional differences between home and host countries to facilitate their development strategy; and (2) companies' IPO success is largely driven by the industry growth potential, fundamentals, and strategic alliances.