Birth of a new giant of Wall Street: Alibaba . Chinese Internet company founded in 1999 and is worth a Facebook , and almost as much as IBM as JP Morgan , the largest bank in the United States, and four times what the second largest car manufacturer in the world, General Motors . The company has also become the most valuable company in China over the technology also Tencent .
After just three hours of trading, its value was about 230,000 million (about 180,000 million euros). Its shares, which initially were trading in a range between 60 and 66 dollars, had finally come on the market at 68, and had reached 100, before falling to $ 90.
The Chinese e-commerce giant, whose shares came to exceed $ 99 at some point in the day, thus overcomes one of its major rivals, the Amazon website, whose market capitalization stands at around 151,000 million or website Facebook, which is worth 200,000 million.
All this has happened with a Chinese company, but listed on the New York Stock Exchange by a company based in Paradise Attorney Cayman Islands . This society, which is who is really present on Wall Street, has a contract with Alibaba to receive a portion of the profits thereof.
That makes the Alibaba listed in what is technically called “entity Variable interest “, a formula designed to circumvent Chinese law has that allows foreign money into companies that country without at the same time there is the slightest danger that these investors have a say in the management of the company.
This peculiar structure potentially has very negative implications for investors, however, seem to have left them behind. The most obvious is that, if they have problems with the managers or controlling shareholders of Alibaba, among which highlights its founder, Jack Ma-, they should go to the Justice China, stands precisely or not to defend the interests of minority or foreign.
For this reason, Alibaba will be excluded from all stock indices in which they invest large pension and investment funds and other financial institutions regulated. As if all that were not enough uncertainties, accounting for Chinese companies has often been questioned on Wall Street, but the scandals have been limited so far to small businesses.
However, these uncertainties do not frightened money yesterday. The best proof of this is that the Chinese e-commerce giant could output a larger bag history. And also, one of the most successful. Keep in mind that when it was announced the IPO in March, it was estimated that Alibaba could have a market value of about 108,000 million euros, although some had the figure to 144,000 million.
! Since the American Internet search engine Yahoo has a stake in the capital of Alibaba, their actions also were boosted yesterday by the pop – as it is known on Wall Street rises after these OPV- Chinese giant. Yahoo! is expected to sell around 140 million shares of Alibaba that I could report some 4,500 million euros after tax.
The company, founded 15 years ago in an apartment in Hangzhou after borrowing $ 60,000, currently has 279 million active users in over 190 countries and manages about 14,500 million per year operating through different portals, reports Efe .
Alibaba, which won last year’s 3.700 billion and a turnover of 8,400 million, employs about 25,000 people who operate Alibaba.com portal and search engine eTao, in addition to its proprietary technology for online payments, Alipay , hence it is a mixture of Amazon, eBay and PayPal.
After his spectacular debut yesterday, the value of Alibaba is 28% higher than the most optimistic forecasts. And 10.780 million that the company hoped to get out, the floors have become 16,900.
In total, 95 of the 200 largest Chinese companies listed in the United States do so by means of the system ” variable interest entity “and to date there has been no problem. However, the unstoppable rise in Alibaba may also be a reflection of what experts increasingly believe that is a huge tech bubble unprecedented in the last decade.
So far this year, Facebook, for example, has spent 13,200 million euros in WhatsApp , a company that has no business model, and 1.500 million in Oculus, a company that does not begin to commercialize any products until at least the summer of . 2015
Of course, the most extreme example is also more basic: I, an application for mobile phones which only allows to send a message (just the expression I, which means hello in USA colloquially) has achieved 700,000 euros of investment funds and private investors. Thus, the emergence of Alibaba on Wall Street could be not only a reflection of the economic power of China, but also of a new tech bubble even greater than that which broke out in 2000 and then plunged the world into recession.
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