IPO’s are a rare occasion in today’s market Two IPO’s brought to my attention due to recent press buzz. The first has been titled the world’s largest IPO, The Agricultural Bank of China raising 22.1 billion last month. The company sold 3.34 billion shares at 2.68 Yuan. Although many invested, some are timid and concerned that the bank’s balance sheet may not be enough to continue growth. The market has not been terribly receptive to the shares recently. The Second IPO I wanted to highlight was that of internet Giant HULU.
Today it was rumored that HULU may be going public valued at a possible $2 billion. Hulu almost single handedly changed the Television game, offering on demand programming to users online, mostly for free. As a direct competitor to Youtube, Hulu offers an alternative to low quality internet footage as well as channel surfing. Offering free viewing of television shows such as Family Guy and Glee, Hulu has built up quite the following and has placed itself at the forefront of future entertainment programming.
Hulu has monetized its content by offering paid subscription to devices, game consoles and television sets offsetting all of the free content the site provides.. Hulu reported revenue of $100 million last year and is suspected to continue on with similar figures.
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