In the early hours of March Beijing time, Alibaba Group officially listed on the New York Stock Exchange on Friday. The price rose sharply on the first day. .% closed at .USD. The market capitalization was US$100 million, surpassing it to become the second largest Internet company after Google.
Alibaba [Weibo] This public offering of approximately 100 million shares (American Depositary Receipts) represents one common stock. This includes approximately 100 million shares newly issued and approximately 100 million shares sold by existing shareholders, raising an amount of approximately 100 million U.S. dollars. The overall valuation based on the issue price exceeds US$100 million.
In addition, Alibaba Group and some existing shareholders have given the underwriters the authority to sell an additional approximately 10,000 shares within a day, which is the green shoe mechanism. By launching this mechanism, Alibaba will raise more than 100 million U.S. dollars, becoming the largest in global history.
The company with the largest financing amount after launching the green shoe mechanism in history is General Motors, which raised US$100 million after its listing in 2016, followed by Agricultural Bank of China, which raised US$100 million in listings in Shanghai and Hong Kong.
The list of people ringing the bell are two Taobao [Weibo] store owners, couriers, user representatives, e-commerce service providers, Taobao online models and cloud customer service, and one is a farmer from the United States. Pieter Wilbrugg sells the cherries from his orchard to China on the other side of the world through Tmall [Weibo].
Jack Ma [Weibo] and Alibaba’s partners and employee representatives chose to stand in the audience and applaud this ecological partner.
Investors are bullish on Alibaba
This largest investment in history has been enthusiastically pursued by global investors. Alibaba completed the oversubscription when it launched the second global roadshow on March 1.
The chief investment officer of American Funds said that they have been waiting for such a hot spot for a long time. Alibaba is a great growth story and there will be plenty of time in the coming years to learn more about Alibaba.
In interviews with the media, investment bank analysts also said that the pricing of US dollars is too conservative for Alibaba. He believes that Alibaba's valuation should be between US$100 million because Alibaba still has great growth potential in China and the international market and can maintain its leadership for a long time.
Alibaba’s business is mature and still growing rapidly. According to its latest prospectus, the transaction volume of Alibaba's Chinese retail platforms (Taobao, Tmall, and Juhuasuan) in the second quarter of this year reached 100 million yuan, of which the transaction volume from mobile e-commerce platforms exceeded 100 million yuan. The proportion reaches .%.
At the same time, Alibaba's revenue in the second quarter of this year reached RMB 100 million, a year-on-year increase of .%, and its adjusted net profit reached RMB 100 million, an increase of % from the same period last year.
In the eyes of investors, Alibaba is at the intersection of the two major trends of Chinese consumption and the Internet economy. The number of Internet users in China has reached 100 million and is expected to reach 100 million by the year.
The Americas managing partner of Ernst & Young, an international accounting consulting firm, believes that although Alibaba has achieved great prosperity in China, there is huge room for growth in commerce, transportation, logistics, etc. for a country with a population of more than 100 million. The e-commerce market dominated by Alibaba still has great growth potential in the future.
Outside of China, Alibaba has also already targeted the international market. The founder of a company that tracks global trade and procurement information said that if you look at some of Alibaba’s recent investment moves, the company has actually invested in many markets outside of China.
Said that Alibaba has actually started its global strategy. Their initial focus was on transactions in the global market, and later they discovered the huge market opportunities in China. So in some ways when Jack Ma talks about the global market, the story starts to become a complete ecological chain. The ecological model is difficult to surpass
The China research director of the consulting company said in an interview with the media that Alibaba’s profitability is impressive. Because Alibaba has a good model that is difficult to copy. It has Taobao and Tmall and has built a payment system, cloud computing and an intelligent logistics system. These systems are very powerful in cooperation with each other.
Alibaba calls it an ecosystem. Jack Ma also mentioned the ecosystem for the first time in his letter to investors. He said Alibaba firmly believes that only by creating an open, coordinated, and prosperous business ecosystem and allowing its members to fully participate can it truly help its customers, small and micro enterprises and individual users. As the manager of this ecosystem, Alibaba’s focus, efforts, time and energy are spent on things and propositions that can make this ecosystem and its participants more prosperous.
Unlike those high-tech companies that rely on selling a certain product or technology to generate revenue, Alibaba relies on operating this huge and extremely complex business ecosystem to generate revenue. The complex ecosystem also makes the business model not simple. At the same time, the complexity of the ecosystem also makes it difficult for Alibaba’s competitors to copy or imitate.
Jack Ma said that the only way for Alibaba to succeed is for the participants, customers and partners of the Alibaba ecosystem to succeed.
One of the individuals who rang the bell for Alibaba’s IPO is former Olympic diving champion Lisa Lau, who is now a store owner on Taobao. She bid farewell to her sports career and opened an online store this month. Luo Lishi said that you don’t have to be gorgeous but you must turn around.
Wang Shujuan, a 20-year-old Sichuan girl, returned to her hometown of Qingchuan, which was devastated by the earthquake, after studying in Australia for two years. She became a third-party service provider for sellers, hoping to help sell honey from her hometown to the world.
According to the prospectus, the number of sellers active on Alibaba Group’s Chinese retail platforms (Taobao, Tmall, and Juhuasuan) has reached 10,000, and more than 10,000 operators rely on the Taobao and Tmall platforms to provide services to merchants.
Wang Zhiqiang, a farmer online merchant, started his business in the village
It has been 20 years since many rural farmers in China began to shop online, and they sold agricultural products and specialties online and even opened collective online stores. Dubbed Taobao Village by Chinese media, media reports said that by the end of the year, such a village now covered more than 10,000 online stores, creating direct employment for 10,000 people.
Courier Dou Liguo has been engaged in the express delivery industry for ten years. While walking around the streets, he also insists on collecting used clothes and items and donating them to those in need. At present, Dou Liguo has donated money to build two rural libraries. There is an express delivery partner in Alibaba's ecosystem that employs more than 10,000 couriers.
As a consumer representative, Qiao Li said that she has been a member of Taobao's number one die-hard fan for ten years. She dedicated a room in her home to collect Alibaba’s mascots, visitor passes, books and clothes over the years. It is Qiao Li who has made Alibaba what it is today. The number of active buyers on Alibaba's platform has reached 100 million.
The representative of cloud customer service is college student Huang Biji. Cloud customer service is a very Internet service method. It brings together people who know Taobao and use their spare time to provide services to customers. Huang Biji has served many Taobao members in three years.
Taoist girl He Ningning is an online store model and is said to be engaged in the most beautiful profession. There are currently 10,000 professional online models in China who have created an output value of more than 100 million yuan. In addition, there are more than 10,000 design agencies, photography agencies, and customer service outsourcing agencies that provide online store decoration design, customer service outsourcing and other services on the Taobao Tmall platform, with an annual output value exceeding one billion yuan.
At the moment the bell rang, Jack Ma and Alibaba’s partners and employee representatives stood in the audience and applauded the bell ringer for a long time.
Ma Yun said that we have struggled for so many years not to let ourselves stand there but to let them stand on the stage.
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