Internet giant “Alibaba” successfully weathered out on the New York Stock Exchange where the company is “Facebook” two years ago, underwent an initial disappointment. “Alibaba” will acquire the capital needed for expansion outside China. The biggest winner, however, a Japanese business group “Softbank” which holds 32 per cent stake, “Alibaba”, now worth $ 80 billion. The Japanese and shares purchased 14 years ago for just $ 20 million.
Chinese internet giant “Alibaba” to successfully weathered historic initial public offering of shares on Wall Street and reached a total value of 228 billion dollars, which is more than the global players in the field of information technology such as the American “Facebook” and “Amazon”.
Buy Alibaba stock IPO
Shares of Chinese business groups, consisting of nine companies that offer all kinds of services from Internet sales, e-mail to the billing and performing banking transactions, are offered at a price of $ 68, but already in the first day of trading reached a value of $ 93.
“Alibaba”, a company that was founded in 1999 by an anonymous English language teacher from the city of Hangzhou, Jack Ma, she went out on the stock exchange in New York in an effort to raise around $ 20 billion which, according to experts in East Asia, used for expansion to foreign markets.
“Alibaba” controls 80 percent of the huge Chinese internet market and now, they say, intends to penetrate the North American market and the market in Southeast Asia, where it has already started to enter into the first business with local companies.
Jack Ma, whose real name is Ma Jun, applies to the richest man in the most populous country in the world and has been repeatedly named the best businessmen of China and placed on the list of the hundred most influential and wealthiest people on the planet in polls in Time magazine and Forbes.
Ma is also a symbol of entrepreneurship and the embodiment of the “Chinese dream” – a dream of enriching a small, ordinary person that has adapted to a dramatic change in the economic system of the country and its own forces raised from the terrible poverty and anonymity of the masses.
Ma, who is the English language at an early age taught by every day bike trip to the local tourist attractions and free of foreign tourists are offered as a guide, upon graduation, began working as a teacher of English at a university in Handžouu, realizing that, by model of inventive private companies in Silicon Valley, one day start his own business in the field of information technology.
In 1995, he first has a small internet company that is considered the first of its kind in China, that would be four years later launched the “Alibaba” – as a sort of Chinese counterpart to American “Amazon”.
Until the establishment of “Alibaba” Ma allegedly making only twenty dollars a month, but since then, for fifteen years, built a true empire, which last year generated sales volume of $ 240 billion.
Although some economists are concerned about the competence of Chinese managers and lack of transparency when it comes to Chinese regulations and state influence on the business of private companies in business in the United States and East Asia in general there is a belief that “Alibaba” in the future will be able to get their hands on a significant part of competitive American market.
The reason for this optimism, except in so far excellent business performance of the company in China, and experts see the personal persistence and determination the Director General Jack Ma.
The real winner of the Japanese
While the entrepreneurial career of Chinese billionaires have placed in line with that we have made Bill Gates, Steve Jobs and Warren Buffett, it is known that most of the action “Alibaba”, as much as 32 percent in their possession holding a Japanese businessman of Korean descent Masayoshi Son .
Son, whose wealth is estimated at nearly 17 billion dollars, that wealth is created mainly in the telecommunications and mobile telephony.
His company “Softbank” in recent years has been run over the competition in Japan, so it was the first contract signed with the American “Apple on” well before the other smart phones offered to their customers.
“Softbank” in the first day business operations “Alibaba” on the New York Stock Exchange made a profit of about $ 4.5 billion.
It is curious, however, that the Japanese company in 2000 to only 20 million shares purchased in the “Alibaba” whose value is now estimated to as much as $ 80 billion, which means that the total earnings of Japanese companies in these shares over the past 14 years 4,000 times greater than the role of?
In a statement to Japanese media in New York, who wanted to know whether it will simply sell its stake in “Alibaba” and go on a long vacation with his billions, boss, “Softbank” Son said he would try to hold the shares as long as the Internet giant their hands.
Economists in Japan are estimated to be ambitious Son, instead of cash in their shares, may take advantage of a share that has the “Alibaba” as collateral for borrowing from the world’s major banks to continue their conquest of the American enterprise mobile market, where his company has already taken the third largest mobile operator “Sprint.”
However, even in his career is rich Masayoshi Son did not go smoothly. Just at the time when he bought “Alibaba” stock, his company, which is a strategic move bought a share in a greater number of smaller IT companies in the development, lost boggling $ 70 billion after the collapse of internet stocks of companies in 2000.
It is Son and his company forced wholesale borrowing, and the deep crisis pulled him success in the field of telecommunications and the gradual recovery of the IT sector.
Reference:
http://www.forbes.com/sites/investor/2014/09/19/alibaba-ipo-day-recap-run-jack-run/
http://www.bbc.com/news/business-29283943
