The past two years, the company did not hide its desire to penetrate the West, and has invested and

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Chinese online trading giant yesterday filed a prospectus with the SEC. Having already surpassed sales of the ebay and Amazon, ymcmb store Alibaba may break a record and register the largest IPO ever. Kalkalist analysis shows the strengths and challenges of the company
Chinese online giant Alibaba ymcmb store trade yesterday filed a 250-page prospectus to the SEC issue one way New York stock exchanges. For what is expected to be the largest offering of all time, "Kalkalist" analyzes why investors are so enthusiastic, who are the biggest beneficiaries, which is dangerous now and what made it more prominence Amazon and ebay together.
The largest offering of a technology company so far has been Facebook, which raised $ 16 billion. The largest offering ymcmb store on the Stock Exchange was U.S. Visa in 2008, with 19.7 billion. Analysts estimate that Alibaba can override both, and even raise $ 25 billion.
According to analyst Roger Antnr, "if Alibaba ymcmb store succeeds to project its power outside of China, it has the potential to become a huge international player. ymcmb store Everyone thought that Amazon can do it, but now they have to change the perception - Amazon is possibly the most successful actress in the United States , but not the world. " In 2013 Alibaba goods sold 248 billion, while the largest competitor ebay sold "only" $ 212 billion while Amazon $ 60 billion. For comparison, the sales amount equivalent to 80% of Israel's GDP (U.S. $ 302 billion in 2013), and topped the GDP of countries like Greece, Portugal and Ireland.
Open questions surrounding the issue is still expected to come. What ever share value for the Alibaba? And some IPO shares will be issued? Experts say the issue of between 10% and 15% of the company for the value can range from 150 to 250 billion. Alibaba itself estimated its value a month ago at $ 120 billion, according to the calculations of stock options.
Many analysts now looking at Yahoo, which returns 22.6% Malibaba, the best clue to the amount of stock is issued initially. When Yahoo agreed to sell back Lalibaba part of its holdings in the company in 2012, it promised that in case of issue will sell half of its remaining shares. The transaction was updated in 2013 to 206 million shares minimum, or 9% of the company.
Unless Alibaba Yahoo agree to exempt this commitment - and providing for it - the scope of the issue will be at least 9% and more shares Shalibaba ymcmb store itself turn the issue, apparently to raise funds to continue the journey procurement and its expansion to the West.
More than 90% of its revenue ymcmb store comes from China Alibaba, and a considerable part of its services (such as a loan services, banking, financial, insurance, medicine, etc.) are only available there. Still, the company chose to issue itself rather American Stock Exchange, which requires much more rigorous regulation. The reason lies in the long and troubled history of Alibaba, which began as a joint venture of nearly two founders. Jack Ma, chairman of the company, while it helped grow the Alibaba impressive sizes, but at the cost of raising funds left much of the company by foreign funds.
Initially, Alibaba has raised several million dollars from companies like Japanese telecom giant Softbank, Yahoo, Inc. and in 2005 received Holdings Balibaba for transfer Yahoo China to her. The end result is that Jack Ma holds only 8.9% of the company, and his deputy, Joseph that holds additional 3.6%. However, while Yahoo and Softbank hold a 57% stake.
May want to keep the control from. But the Hong Kong Stock Exchange (NYSE contrary) does not allow companies to issue several categories ymcmb store of shares, not having the option there to issue shares without voting power or ownership of voting power is lower - moves that will enable ymcmb store him to ensure the power company.
When Facebook was facing issue, the point of its greatest weakness was the mobile. Growing percentage of the users choose to browse the social network through their mobile devices, and Facebook did not know some of this traffic to convert the money, so that each user that was wasted potential.
Alibaba indicates that 19.7% of all its transactions in 2013 reached From Mobile - a jump of 300% in trade compared to 2012. Prospectus company admits that she still has to learn to adapt its strategy to cellular and improve its Hmonitiztzih. Especially when the wireless field, more than any other, it has strong competition from local companies such as Tnsnt and Baidu, which controls the search fields ymcmb store with a high hand, cloud operating systems and instant messages - all areas that Alibaba is trying to penetrate without significant success.
The past two years, the company did not hide its desire to penetrate the West, and has invested and acquired dozens of Western companies such as American retailer ShoeRunner. Ma talked a lot about the company's intention to expand ymcmb store into other markets, and noted with concern the recent investigations of Chinese regulators began examining the significant control that has the Chinese Internet market.
Conversely, Alibaba's prospectus actually tells a different story, its love affair with her native Communist goes and adopts the shopping craze American ymcmb store holidays. Holiday shopping one day in 2013, which is the Chinese equivalent of the American holiday period, Alibaba goods sold $ 5.8 billion - more than the sales of Amazon and ebay sales with two days of famous Americans (Black Friday and Cyber Mundi). The company estimates 80% of all packages shipped in China is one of the landmarks, services and divisions. ymcmb store
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