Wall Street'S "Horse": Alibaba Is One Of The Best

In September 19th,

Alibaba's banner has been hung up.

The New York Stock Exchange building is full of Alibaba logo, showing five major businesses respectively: Ali cloud, Tmall, Taobao, Juhuasuan, AliExpress.

At 6 a.m. local time, the NYSE security department has long queues.

Ali listed the world's highest market capitalization company, Ma Yun officially sealed the gods in Wall Street.

New favorite of Wall Street

On the eve of Alibaba listing, there were few visitors to the NYSE, and the popularity was far less than that of the two cattle.

With the escalation of the anti terrorist situation in the United States this year, most of the NYSE periphery has been separated by the iron fence, and the police force has also increased significantly.

The NYSE's publicity for the latest listed company is obviously not as fashionable as the large digital display of NASDAQ (4579.79, -13.64, -0.30%). On the 17 day, a family health service company named Civitas went public, and the way welcomed by the NYSE was hanging a white banner upstairs.

But these did not affect Alibaba personnel, investment banks and NYSE personnel frequent access to discuss details before listing, the frequency of Chinese faces also increased significantly.

Curious reporters wanted to get a few words of information, but they were all refused to stay outside because of no appointment.

These investors who have been immersed in the capital market for many years clearly know the value of Alibaba. Ma Yun held a IPO roadshow in New York Waldorf Hotel a few days ago, attracting nearly 1000 investors to queue for half an hour at the door.

The Waldorf Hotel was very deep in China. When Li Hongzhang visited America in the early years, he stayed here. Later, he received more than a few Chinese leaders.

John Jackson, a Citibank trader who smoked downstairs, was also one of Alibaba's supporters. In September 18th, he told the newspaper outside the New York Stock Exchange that Alibaba accounts for more than 80% of China's e-commerce market, but China's territory is large enough to cover much more than 30% of its growth rate.

Businesses that are similar in size and growth are rare in the US.

"Imaginative companies are always the pet of Wall Street."

He said.

According to the updated prospectus issued by Alibaba, the company gained 15 billion 771 million yuan in the second quarter of 2014, an increase of 46.3% compared with the same period last year. Net profit was 12 billion 440 million 400 thousand yuan, an increase of 179.6% compared with the same period last year, and net profit accounted for 78.9% of the total income.

China's e-commerce research center estimates that Alibaba net profit in the 2015 fiscal year is expected to reach 32 billion 500 million -350 billion yuan.

Of course, not all investors are fond of Alibaba. Some people question their VIE structure and Alipay divestiture.

However, these objections are obviously difficult to attract the profit margins of Alibaba in the face of Ali's strong profitability and imagination.

Abigail Doolittle, founder of Peak Theories, who took part in the roadshow, believes that if Alibaba is optimistic about the future of China's e-commerce, it will undoubtedly be the preferred investment target.

Moreover, unlike most hi-tech Internet Co, they are listed on a loss or profit margin. Alibaba has strong profitability and even hopes to lower the average price earnings ratio of the market.

Things are scarce.

In the afternoon of the eastern time of the United States, the Alibaba submitted an updated IPO document to the NYSE. The company referred to as "BABA" increased the IPO price range and raised the pricing range of ADS (US depositary receipts) from $60 to $66 to $66 to $68 in September 15th.

At 5 p.m. on September 18th, Ali officially announced that the IPO issue price was set at $68.

According to this calculation, Alibaba's listing fund raising is expected to be close to US $21 billion 760 million.

If the green shoe mechanism is launched again to exercise excess allotment rights, that is, over 15% of the shares will be allotment, the financing amount will reach US $25 billion 32 million, and the overall valuation of the company will also rise to US $174 billion 900 million.

Undoubtedly, this has become the largest financing IPO in history, exceeding the historical record set by the Agricultural Bank of China for 22 billion US dollars, leaving behind the VISA company ($19 billion 600 million), General Motors ($19 billion 100 million) and Facebook ($16 billion).

This is a historic moment for the global capital market. "Ali IPO is expected to record the significance of China's new economy in the global pattern. Ali will have great imagination in terms of diversified acquisitions and overseas expansion, and financing will provide support."

Changjiang Securities analyst Liu Jiang said in the latest research report.

Ma Yun said at a luncheon conference in Singapore that the growth prospects of China's three or four tier cities are huge and will strive to provide delivery services along the logistics chain.

In addition, Alibaba can expand its user base to other Asian markets as well as Brazil and Russia.

At present, Alibaba's global express platform has become an excellent place for Russians, Americans and Brazilians "Taobao". "Jiangsu, Zhejiang, Shanghai and America" has become a standard for Taobao sellers to attract business.

Ma Yun got his wish.

In the morning of September 19th, at least three people in the United States were most excited.

Yang Zhiyuan, who took charge of YAHOO's deal with Ma Yun, led to a 107% rise in the year when the company was on the decline, and another key person, of course, was Sun Zhengyi.

He was almost one of the first investors to invest in Ma, even though he bought it.

The purpose of the time is to sell it, but this is nearly ten years.

Another is, of course, Ma Yun.

In Ma Yun, the significance of the company's public trading is not to create a company with a market value of 160 billion or even about 170000000000. Instead, the knot that has been entangled in his mind in recent years has finally been solved: Ma can buy back some of the shares, so that YAHOO's shareholding ratio will drop from 30% to 13%.

Yes, all of today is due to the "Ya Ba cooperation" announced nine years ago in August 2005. When YAHOO used all the assets of 1 billion US dollars and YAHOO China, it became the 39% owner of Alibaba group.

And Ma Yun's actions in the following series are all for the decision at that time to pay a higher price: VIE or listing.

All this is to urge YAHOO to repurchase its shares and retake the company's largest shareholder status: this idea has finally been realized: according to the repurchase agreement amended by the two sides in December 13, 2013, when Ali IPO, YAHOO must further sell 208 million shares of the company (the number before the amendment is 261 million 500 thousand shares), which is sold to the public or bought by Ali group.

After the sale is completed, YAHOO will hold only 315 million 600 thousand shares, and its shareholding will be reduced to less than 13%.

However, even when YAHOO was on the market, shares fell less than the largest shareholder. Softbank rose to the largest shareholder. Ma Yun and its team still could not control the company.

Therefore, Ma Yun designed the "partner system", whose core is through the partner system and the nomination rights of more than half of the partners, Ma Yun team can only rely on about 13% of the equity, that is to achieve absolute control of the board.

Everything is going on in accordance with Ma Yun's plan. For Ma Yun, IPO's time is the key time for him to take back the company's stock right. Its significance is much bigger than that of the stock price and the market value surpasses Amazon.

Although the partner system of Ma and Alibaba has not been fully understood in Hongkong, and even in the United States, it has been questioned by local media. Some media and agencies are always warning investors to be careful that the minority shareholder controls the board of directors and reminds the public investors that the company will "shift the interests of shareholders".

But no doubt, Ma has won a decisive victory in taking part in YAHOO's partial shareholding.

Partner system has been crowned.

With the listing of Alibaba, it also means that New York has accepted the partnership system of Alibaba.

The reason why the system failed to be accepted by the Hongkong stock exchange is that all rules are in an uncertain state.

According to Ali's description, Ali's partner is composed of 28 members, including 22 members of the management group of Ali group, and 6 management members of the affiliated company and Affiliated Companies.

The nomination and election rules are that the existing partners can nominate new partners, but the existing partners are required to get the majority of 3/4 through one person, one vote.

The basic conditions for nomination of new partners are: high standard of personal integrity; at least 5 years in Ali group or affiliated company; outstanding performance contribution; highly identification with company culture, willing to do everything for the company's mission, vision and values.

In addition, in order to keep the partner's behavior consistent with the interests of shareholders, partners must hold a certain number of shares during their tenure.

The withdrawal and recall of partners are: Ma Yun and Cai Chongxin are permanent partners, while other partner members automatically lose their partners when they leave or retire.

Existing partners (including Ma Yun and Cai Chongxin) will lose partners if they are voted out by half of the existing partners.

The 28 partners have such a rule on the nomination of directors: after IPO, the board members of Ali group will increase from the current 4 to 9, while the partner of Ma controlled Ali will get 5 nominations.

A partner may elect a director candidate by voting in a simple majority way. If a director candidate nominated by Ali partner is not approved by the general meeting of shareholders or leaves halfway, the partner has the right to appoint another temporary director until the next year's shareholders' meeting.

The provisions on the nomination rights of the partners will be written into the articles of association of the Ali group after IPO.

In order to amend the terms of partnership nomination of directors in the articles of association, it is necessary to obtain 95% of all shareholders' approval.

Ali's prospectus reveals that Ma shares 8.9%, Cai Chongxin holds 3.6%, and the remaining co founders share less than 1%, so the total shareholding ratio of Ma Yun team is about 13%.

The largest shareholder of Ali has 34.4% stake in Softbank, while YAHOO, the second largest shareholder, has 22.6% stake, and two share up to 57%.

Through the partnership system and the partner's rights to nominate more than half of the directors, Ma's team relies on only about 13% of the shareholding, which means that the absolute control over the board of directors is achieved.

IPO undoubtedly adds a default endorsement to Ali's partner system.

At this point, Ma Yun realized the absolute control of Alibaba. No matter how many shares, he firmly controlled the board of directors.

　　阿里的存在感