Alibaba shoots 36% higher after Wall Street IPO and is already worth more than Facebook (cur)
A Chinese technology debuted in large on the New York Stock Exchange. The shares began trading at $ 92.7, 36.3% above the price at which they were sold to investors who participated in the IPO.
The shares of Alibaba estrearam- in bag with a sharp rise. The first trading by 16.53 Lisbon, was performed at $ 92.7, which represents an increase of 36.3% compared to the price at which the shares were sold to investors ($ 68).
In following the first trading actions evolved in high minutes, approaching the $ 100. Evolved between 90.04 and $ 99.70 (up 46.6%), and within minutes have been traded over 100 million shares, more than the liquidity of Twitter in full day debut on the stock exchange.
A sharp rise in stock market debut gives the company led by Jack Ma (pictured) a market value of 228 500 million dollars. A market capitalization already exceeds the market value of Facebook and that, in the technological sector, is just behind Google, Microsoft and Apple.
The initial public offering (IPO, its acronym in English) of Alibaba determined to sell the shares for $ 68 per title. These values classify the IPO of Alibaba as the largest ever in the United States, surpassing that of Facebook, which in 2012 amounted to 16 billion dollars. The largest ever IPO in the United States was conducted by Visa in March 2008:. 19.7 thousand million dollars
This IPO of Chinese technology may still be the largest ever in the world, if is exercised the sale of allotment of shares. The biggest initial public offerings were achieved by two Chinese banks:. The Agricultural Bank of China with 22 120 million dollars raised, and the Industrial and Commercial Bank of China with 21 930 million
the price at which were sold to investors in the IPO ($ 68), Alibaba has a PER (price-earnings per share estimate for this year) of 29 times. A ratio that is below presented by other technology, such as Amazon.com.
The prospects of the company are of strong growth. The company had 279 million active buyers in June, which generated revenues of 8460 million dollars in the fiscal year ending March
With 80% of online commerce in China, the company’s goal now is to enter other markets to continue to grow. Analysts point to a growth of 50% in the results of this fiscal year.
The company is led by entrepreneur Jack Ma, who started as an English teacher but decided to create a company in his apartment in the Chinese city Hangzhou during the 90s.
With the growth in China, Alibaba has focused its attention on the emerging middle class in a country with a huge market of 1.36 billion people. This was his trump card, which enabled the online retailer grow even earn enough to become a public company muscle.
In recent meetings with investors, the entrepreneur Alibaba described as “a company of Internet who happens to be Chinese. ” With 80% of online commerce in China, the company’s goal now is to enter other markets to continue to grow.
In the email that Jack Ma addressed the more than 22 000 employees of Chinese online retail minutes before to be delivered the prospectus of the IPO, the entrepreneur said that “being a public company (publicly listed) was never our goal.” 15 years after the creation of Alibaba, the bag is “just a strategy and an important method” to achieve its mission.
“Just continuing to persevere and grab our beliefs will be able to survive the next 87 years of difficulties, pressures and temptations, “says. Ma revealed that in 1999, the aim of the founders of Alibaba was to create a business that would survive 102 years.
What you need to know about Alibaba
It has been commonly presented as a mix between eBay and Amazon. But it is more profitable. Represents about 80% of Chinese online commerce is but little known in the rest of the world.
Retailer that does everything
When it was launched in 1999, Alibaba wanted to create a link between Chinese exporters and other companies 190 countries. Allowing a European company found a Chinese manufacturer and hire their services. However, not only are companies that can use this system. One of the sites Alibaba’s taobao.com which is considered the largest “shopping” online China. It also owns the tmall.com that sells primarily branded products and is wanted by mostly middle class.
Has version of Twitter and YouTube
The presence Alibaba in the internet world does not stop there. The company has its own online payment system, the alipay.com, similar to Paypal. It also holds a significant stake in Sina Weibo, the Chinese version of Twitter, Youku and Tudou, very similar to the popular YouTube.
More profitable than competitors
Of the 18 employees who in 1999 had increased to around 22,000 today. Represents 80% of China’s online commerce. And have a more profitable than competing business model. The operating margin amounts to 57%, compared with 28% of eBay and Amazon 1%. Its recipes come mainly from advertising, not commissions, as with rivals.
From China to the rest of the world
The market dominance Chinese online contrasts with the known international reduced. But the dispersion of the capital on Wall Street will help the brand is more recognized worldwide, approaching internet giants like Facebook, Amazon and eBay.
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