Alibaba began its two-year plan where it would buy-back shares worth $4 Billion. Jack Ma and Joe Tsai, the founder and vice chairman of the company respectively, said that they would buy the shares of the company with their own money. However, the e-commerce company has not disclosed (in filing to the New York Stock Exchange), the amount that the two will invest as affiliated purchasers in the buy-back.
At present, Joe Tsai owns 3.1%, while Jack Ma owns 7.6% of Alibaba. According to reports, the repurchase plan of shares failed to boost the share price of Alibaba.
It rose by 0.08% to $74.82 slightly higher than the IPO rate of $68.
Last year in September, the company based in Hangzhou was listed on the New York Stock Exchange.
From all-time high of $120 its shares fallen in November.
When Alibaba revealed the share repurchase plan, it posted slower revenue growth in the second quarter of the year of 28% to reach 20.2 billion yuan, i.e. $3.2 billion.
The growth represented a decrease from 45% in the first quarter of this year, while 40% in the fourth quarter of the previous year. This is because the slowing economy dragged the consumer spending considerably down.