Jingdong And Alibaba, Who Will Become The First Electricity Supplier?

Only people remember first, no one will remember second.

From 2013 to date, Jingdong mall and Alibaba The competition for "the first share of the electric business" has never stopped.

In May 10th, Jingdong submitted a prospectus to the securities and Exchange Commission (SEC) fourth degrees. If all goes well, Jingdong will first complete the listing in the US before Ali, grabbing the throne of "the first share of the electricity supplier".

Recently, Jingdong has launched a global investor roadshow process.

As of Monday, Jingdong has attracted enough stock subscription from the US professional technology fund to meet its issuing requirements. Chinese investors, international long-term funds and sovereign wealth funds also participated in the Jingdong subscription of new shares.

Yesterday, reporters from a person close to the Jingdong roadshow preparatory work received the news that the final issue price of Jingdong will be determined in May 21st and will be listed on May 22nd.

　 Twists and turns of IPO

Jingdong's latest prospectus shows that the price range of Jingdong IPO is $16 to $18 per American Depositary Receipts (ADS), raising a maximum of $1 billion 939 million.

In terms of circulation, Jingdong's IPO expects to issue 93685620 shares of ADS, and will also grant the Underwriters 14052840 ADS excess allotment rights, that is, the maximum circulation is 107738460 shares ADS.

In terms of the amount of financing, the maximum amount of IPO issued by US $18 and the maximum circulation amount of 107738460 shares ADS are calculated. The maximum amount of IPO financing is $1 billion 939 million.

Reporters accordingly calculated that after the listing of market capitalization, the issue price ceiling of 18 U.S. dollars, the total share capital of 1367085865 shares ADS, Jingdong's IPO market value of about $24 billion 660 million.

According to the new shareholding structure disclosed by Jingdong, the shareholding ratio of top management team represented by Jingdong founder Liu Qiangdong increased to 18.8%, the largest shareholder of Jingdong. It is disclosed in the prospectus that the board of directors may not make any decisions if Liu Qiangdong is not present.

And the last Jingdong came out. IPO The news was in April last year, but at that time, under the pressure of many negative information, such as lack of cash, siege of competitors, low profits and executives turnover, Jingdong finally suspended the listing to seek the fifth round of financing, but the amount of financing did not reach its ideal price.

In fact, at the end of February this year, people from Wall Street investment bank said that Jingdong's pre road show was in a cold spell, and there were no expected results in a number of communication meetings with investors in the United States. At that time, the US investment institutions had a low response to Jingdong valuation, and the IPO situation in Jingdong was relatively passive.

One of the main reasons is that although Jingdong's revenue growth in 2013 was 67%, it has not yet made a profit. In January 30th this year, the IPO prospectus submitted by Jingdong showed that in the first 9 months of 2013, Jingdong realized a net profit of RMB 60 million yuan, the first time it turned around. Like Sina micro-blog, Jingdong quickly applied for IPO after losing its first deficit.

In March of this year, Tencent's investment has eased some pressure on Jingdong.

People familiar with the matter told our reporter that the roadshow Jingdong emphasized three main advantages: the advantages of mobile terminals, capital cooperation with ALI rival Tencent, and its logistics network.

Jingdong PK Ali

As the two giants of the electricity supplier industry, whether the industry or capital market, Jingdong and Alibaba two are often benchmarked.

Li Zhize, chief analyst at Analysys International, said: "Alibaba and Jingdong two are not completely comparable. Jingdong's positioning is still a pure e-commerce company. Ali is a platform, including logistics, e-commerce, big data, O2O and other businesses. The scale and layout of both are not an order of magnitude.

"In the roadshow, Jingdong repeatedly stressed that the model is different from Ali, that is, Jingdong is more like Amazon built on its own logistics, while Ali is more similar to eBay." The Jingdong is trying to persuade investors to subscribe to the shares of Ali and Jingdong at the same time, not one of them, the people familiar with the matter said.

A capital insider familiar with China's stock market told reporters that from now to this autumn, before Ali IPO, it is expected that about 6 China Internet Corporation will make IPO in the US stock market to snatch capital pools.

Take the two Chinese technology companies recently listed as an example, the price of the cheetah mobile issue price is 14 US dollars, but this has shrunk by 1/3 compared to the original 300 million US dollar financing, while the way cattle chose the lower limit of the issue price range of US $9, and the total amount of financing has been reduced from the earliest US $120 million to US $101 million 200 thousand.

Zhuo Saijun, an e-commerce analyst at Analysys think tank, thinks that overseas investment institutions are more interested in Ali's B2B mode than Jingdong's B2C mode. On the other hand, Ali's dominance in the domestic electricity supplier sector is hard to shake in the short term, and the large platform business of packaged listing has gained market favor, and how the layout of the relatively vulnerable Jingdong is the key to the game between the two sides.

Jingdong's latest prospectus disclosed that after Tencent's stake in Jingdong, Jingdong currently has a valuation of $15 billion 721 million. From the Jingdong earnings report, it was still losing money in 2013, with a net profit of -5.79 billion yuan, but the 2013Q4 operating loss rate was 1.3%, narrowing compared with the same period in 2012. The IPO Jingdong plans to raise $1 billion 500 million in funding.

Compared with ALI, according to YAHOO's latest earnings report, the profit in the fourth quarter of last year doubled to $1 billion 350 million, while revenue grew 66% to 3 billion 60 million dollars. In 2013, the net profit of Ali was US $3 billion 500 million.

The US investment bank expects that the market value of Ali will reach 150 billion to 200 billion dollars after its listing, and its IPO will create the largest scale of Global Internet Company financing.

"Overseas market liquidity is limited and the market environment is limited. Overseas institutions' interest in Alibaba is significantly higher than that of several listed technology stocks recently listed." AI media consulting CEO Zhang Yi believes that Jingdong and Ali's battle for money is inevitable.

Stories can't stop.

Jingdong listed on Nasdaq, its underwriters include Merrill Lynch AG, UBS Investment Bank, Alan Corporation, Barclays Bank, Huaxing capital, Jie Furui investment company and so on.

According to Ali's first paper, the world's top investment banks gathered as underwriters, including Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan chase, Morgan Stanley and Citigroup.

The confrontation between Jingdong and Ali actually tests the underwriting ability behind it.

In the face of "Big Mac" and highly valued Alibaba, Jingdong can not rush to be listed before Ali, or divert funds and capital markets to smaller people's attention.

The above insider analysis said that at present, the capital market's concerns about Jingdong IPO are mainly manifested in whether they have the direction of continuous profitability.

On the other hand, in April 10th, US technology stocks experienced a black Friday crash and spread rapidly to the world, causing major indexes to fall. Since then, concerns about the technology bubble in 2000 have been circulating in the market. This has also cast a shadow over Jingdong's IPO.

"Wall Street likes to listen to stories. It's not profitable yet. JD.COM We must deepen our own vision of potential, prospects and non bubbles. The insider said.