When Hangzhou, China-based Alibaba (NYSE: BABA) went public last week, it could have been any other weekday on the stock market. But when it took the title of the largest public offering ever, it also inspired other tech companies. In an article published today, Sept. 22, CBS Moneywatch reported that other tech firms are getting ready for their IPOs – which may receive more interest from investors, thanks to Alibaba’s success.
Thanks to exceptionally high demand for its stock, Alibaba’s stock jumped to raise an initial $21.8 billion for the company, which is now worth $236 billion. According to CBS Moneywatch, this could go one of two ways for tech entrepreneurs: either investors could get really excited about new IPOs, or Alibaba could start snapping up US-based companies with its newfound wealth. It’s likely that Alibaba will start looking for companies to acquire; it already has a reputation for investing to the tune of $1.45 billion over the past two years in 23 different stakes.
Meanwhile, 16 large and not-so-large tech companies are vying for a piece of the investment pie. Companies including GoDaddy and DealLogic have filed the paperwork to raise money through initial stock sales. Investors are currently keeping a close eye on Alibaba stock, as it slipped 4 percent this morning, just its second day of trading. There are also enough investors who remember the dot com boom – and epic bust – of the early 2000s and are wary of the influx of venture capital into new tech companies.