The Privatization Of Hong Kong Stock From Alibaba

On Monday, Alibaba shares rose 4% to "double 11", hitting the highest value of $119.45 in the session, and for the first time, the market value exceeded $300 billion.

Since landing on the NYSE, Alibaba has risen by more than 70%.

In contrast to 2007, Alibaba listed in Hongkong also led to investor madness, and then was privatized in 2012.

In 2007, just as Hongkong's Hang Seng index was at its peak, the Hong Kong stock market ushered in Alibaba and investor sentiment was in a frenzy.

During the public offering period of several days, the freezing funds amounted to HK $450 billion and oversubscribed more than 257 times.

In terms of international placement, Alibaba has attracted over HK $14000, subscribing to over 1000 institutional investors and oversubscribing 186 times.

At the beginning of the Alibaba trading, the share price soared two times, and the volume was huge, which almost led to the collapse of the trading system.

In those days, Alibaba had forecast earnings per share at 112 times in 2007, but on the first day of its forecast, the price earnings ratio increased to 325 times.

Unfortunately, the good times are not long.

The "Hong Kong stock through train" that had passed the heat did not start. In the past year, the global financial tsunami has also ushered in, and Hong Kong stocks plunged more than 50%.

Alibaba lost more than $20 billion in value, plunging 91% from its peak in November 30, 2007 to its low level in October 28, 2008.

In 2012, Alibaba group decided to privatize Alibaba listed for five years, and proposed that the price of HK $13.5 should be used to repurchase shares from shareholders.

At that time, many Chinese and foreign media telephoned the author, the first question was: "Wen Tian Na, how do you see the antecedents and consequences of Ali's privatization? Is it fair?"

Someone once said,

In the five years of listing, it used billions of dollars of interest free loans from shareholders.

However, if shareholders do not agree to buy back, they may vote against it.

If privatization can not be passed eventually, the stock price will return to its original form, which will have risks for minority shareholders.

at that time

At the same time, the market has already pointed out that privatization is to solve the problem of equity ownership with YAHOO.

At the same time, in order to facilitate the future listing of the group as a whole.

In addition, due to the purchase price, the rights of minority shareholders have also attracted much attention.

The Alibaba after the resumption of trading has risen 42.7% before the announcement of privatization, which is close to the privatization price.

Privatization of listed companies is not uncommon in the Hongkong market.

Usually when the market is not ideal, enterprises will consider privatization.

The main cause is usually

The downturn is even lower than net asset value, and turnover is low for a long time, securities lose financing function, listing is meaningless and so on.

If the market is booming and the share price is high, the privatization of enterprises will not be approved by the small shareholders and the cost will be high.

In addition to the above characteristics, the privatized enterprises usually have the characteristics of high cash level and holding more than 50% of the single largest shareholder.

In addition, some enterprises may feel that the prospects are very beautiful, the public can not understand, or even there is an extreme situation, that is, they are unwilling to share the future dividends with the public, so they can be privatized.

Of course, the integration of the enterprise itself and the parent company group is also an important consideration.

There are also some listed companies that pfer their assets to large shareholders through low prices, so that listed entities are still on the market, but important assets have been pferred and privatized curves.

Of course, some enterprises, like Alibaba, are going to make a comeback after they are privatized.

In addition, there are also some listed companies because the stock price can not reflect the value of assets. The majority shareholders are really interested in the minority shareholders, and hope to be listed again in the future.

However, there are not many such cases.

On the contrary, like Alibaba, most of the assets of the listed company will be split or reorganized.

From the privatization process, generally speaking, privatization is usually put forward by the controlling shareholders. YISHION cash or securities have the option of cash and buy shares to other small shareholders.

If privatization is successful, the listed company will apply to the stock exchange for cancellation of listing status.