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September 19, 2014 • 15h41
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Operators on the New York Stock Exchange at the opening of trading of the shares of Chinese e-commerce company Alibaba.
Photo: Brendan McDermid / Reuters
Shares of e-commerce company Alibaba soared on its first day of trading on Friday, with investors taking advantage of the chance to enter in what must be the largest initial public offering (IPO, its acronym in English) of the story and to profit from the growing middle class in China.
It was an auspicious debut for the company which already accounts for 80 percent of online sales in China and was founded by Jack Ma in her apartment in 1999.
About 100 people gathered outside the New York Stock Exchange, many of them Chinese tourists with cameras who cheered when Ma left the building.
The first business, Alibaba’s action came to $ 92.70 and quickly rose to 99 , $ 70. More than 100 million shares changed hands during the trading session in the first 10 minutes of trading. At 15h31, the GMT, the shares rose 35.9 percent to $ 92.44. .
“It’s the most anticipated event I’ve ever seen in my 20 year career on the New York Stock Exchange I think the movement today is sustainable: the company is profitable, unlike some of their competitors, and is a way for investors to take advantage of China’s growth story, “said the partner of J. Streicher & amp; Co, which operates in the North American market, Mark Otto.
Initially, the IPO of Alibaba turnover of 21.8 billion dollars, considering the number of shares in the offering and the initial price of $ 68 per paper.
The director of global business listing from the NYSE, Scott Cutler, told the American network TV CNBC that the option was exercised for placement of 48 million additional shares, raising the financial turnover operation for about 25 billion dollars, becoming the largest IPO in history.
Alibaba is almost unknown to most Americans, but it is ubiquitous in China, where he is responsible for 80 percent of online sales. The company earned $ 3.7 billion in the 12 months ended March 31, 2014, an increase of about $ 2 billion from the previous period.
The pricing in the Alibaba IPO assigned a value of about 168 billion dollars, up from American icons like Walt Disney and Coca-Cola market. If the company’s stock closed near $ 90 on your first day on the exchange, the company will have a market value of around 222 billion dollars, almost the same as the giant consumer goods Procter & amp; Gamble.
With the strong appreciation of the shares of Alibaba debut on the stock exchange, investors run the risk of unfulfilled expectations for additional gains with the role.
At a price of about $ 90.50 per paper, Alibaba’s action implies an amount equal to 38 times its estimated earnings per share for the current fiscal year, which ends in March 2015 This is more or less in line with the valuation of Facebook 39 times earnings, but nowhere near the high valuation of Amazon.com, with multiple of 264 times, according to data from Thomson Reuters StarMine.
“The question is whether this money will become stationary for the next six months,” said a fund manager. “The action will be trading at about $ 93 and will remain stable?” He asked.
The IPO allows large investors in Alibaba and Softbank and Yahoo Japan profit from the IPO of Chinese enterprise.
Yahoo sold shares of Alibaba estimated at 8 billion dollars in the operation, still getting a share of 16.3 per cent in the company.
Softbank is not selling shares in the Alibaba IPO, and continues with a stake of 32 percent in the Chinese company, and its largest individual shareholder.
(Reporting by Liana Baker, Ryan Vlastelica and Jessica Toonkel, with additional reporting by Caroline Valetkevitc
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