Here are some of the highlights from Milan Fashion Week in photos …
AP – China’s e-commerce giant Alibaba began trading its shares Friday on the New York Stock Exchange. Here are nine things to know about Alibaba, and why its initial public offering made history:
THE BIGGEST: Alibaba raised $21.8 billion in its debut, making it the biggest U.S.-listed IPO in history after the IPO of credit card processing company Visa in 2008. If Alibaba’s investment banks were to exercise their option to sell an additional 48 million shares, it could make Alibaba’s IPO the biggest in the world, beating out the $22 billion IPO of Agricultural Bank of China in 2010.
courtesy of Reuters (edited by TFL)
The Second Circuit Court of Appeals in New York has directed two lower court judges to reexamine whether they had the authority to force compliance with court orders freezing accounts in China in light of a U.S. Supreme Court decision limiting federal court jurisdiction over foreign corporations. New York courts have grappled recently with whether foreign-based banks can be forced to comply with orders freezing overseas assets. On Tuesday, New York State’s highest court heard arguments on whether state law prohibits a Motorola subsidiary from freezing the assets of a Turkish family held in the United Arab Emirates by Standard Chartered Bank. The Federal Reserve Bank of New York backed foreign banks in a similar case, warning that subjecting bank headquarters to U.S. law via their New York City branches could imperil the city’s status as a global financial center.
As fashion month advances, so, too, have an array of fashion law and business of fashion matters that have been in the works. Chinese internet giant, the Alibaba Group debuted on the New York Stock Exchange in one of the biggest initial public offerings to date. Texas authorities and the Ballroom Marfa Foundation came to an agreement to keep iconic art installation, Prada Marfa open, and Urban Outfitters continues to rely on shock value and controversy as a means to boost its unimpressive sales growth. Here is what else you may have missed this week …
The Alibaba Group, the Hangzhou-based group of Internet-based e-commerce businesses, is slated to raise nearly $21.8 billion in its initial stock sale today. Other sources report that it could fetch up to $24.3 billion, making it one of the largest initial public offerings to date. The company, which boasts Yahoo as a key shareholder, priced its shares at $68 each (and is now expected to open at between $92 and $93 a share, CNBC said, at the top end of an already raised range), and investors are expected to flock to buy a piece of the company that is poised to continue dominating China’s burgeoning e-commerce industry. According to the New York Times: “The stock sale also marks a coming of age of the Internet in China, a country with nearly 1.4 billion, less than half of whom venture online. Alibaba’s main pitch to investors in a globe-spanning roadshow over the past two weeks has been the enormous potential wealth that can be made as more Chinese citizens log onto the Internet and shop for goods.”
For a point of comparison, Michael Kors’ 2011 IPO, with its $25 shares, pulled in $944 million for the affordable luxury retailer. Fellow fashion company, Vince, raised $200 million by selling 10 million shares for $20 each in 2013. Facebook raised $16 billion in its 2012 IPO, with shares priced at $38 each.
Chinese police seized over $160 million in counterfeit accessories this week. Police in southern China’s Guangdong Province raided the operations of a criminal group responsible for manufacturing counterfeit luxury purses and seized over one billion yuan ($163 million) worth of Louis Vuitton items, among other fake designer goods. This raid, which also included 14 arrests, comes on the heels of an ongoing operation cracking down on counterfeit manufacturing in southern China. As of this past June, police have shut down six manufacturing centers, which were produced fake Louis Vuitton goods, as well as corresponding e-commerce websites.
In the last two years, emerging fashion brands like Christopher Kane, Altuzarra, J.W. Anderson, Nicholas Kirkwood and Roksanda have attracted a flurry of investment. Here are the new fashion labels we would bet on, based on their commercial and creative potential. – BOF
Hermès to Expand in China as Other Luxury Brands Pull Back: In light of the opening of the Paris-based brand’s lavish four-story outlet in a historical government building in Shanghai’s former French concession, the company also plans to open two stores, in Beijing and Chengdu, this year and one or two next year. – WSJ
Michelle Phan is responding to that lawsuit that Ultra records filed against her for using its music without paying royalties. The beauty blogger has filed a countersuit, alleging that they two parties had a deal and that Ultra is actually in the wrong, not her. – TFS
After a seven-year hiatus, Gemma Ward made her modelling comeback by opening the Prada show, one of the highlights of Milan Fashion Week. – Telegraph