How About The Stock Subscription Of Alibaba?

This is the biggest flaw in the listing of Alibaba, because it is related to corporate governance that investors are most concerned about.

In the 20011 years of the Alipay incident, the Alibaba in order to meet regulatory requirements to get the third party payment license, in the case of YAHOO and other directors did not fully agree, the pfer of Alipay ownership to Ma Yun holdings of a Chinese domestic company - small gold clothing.

Although Alibaba has signed the profit sharing agreement, it has safeguards the interests of the company.

But investors do not buy it. They think your Alibaba can do this before, and they are not allowed to do it again in the future, so how can the interests of shareholders be protected? Even under the existing corporate structure, Alibaba insiders have only a minority stake, but they have permanent control over the company, and the strength of shareholders is very weak.

Investors are so worried.

Because it's really cheap.

The Wall Street news once quoted Bloomberg calculations, Alibaba's 2014 earnings is 29 times, compared with Baidu 34 times, Tencent 37 times, Amazon 135 times.

The average price earnings ratio of China's Internet and e-commerce enterprises listed in New York and Hongkong is 43 times.

Many investors believe that once the Alibaba stock starts trading, its valuation will reach the same level as the industry peers.

Another important reason is that although Alibaba is a large cap company but not a US company, it can not be included in the S & P 500 index. This gives the US Large Cap Fund opportunities to catch up with the S & P 500 index before the end of the year. For this, the Wall Street knowledge has been elaborated in detail and can be viewed here.

Alibaba's IPO final price increase was only $2 (3%) to $68 per share, compared with the original $60-66 range.

Compared with the past US stock IPO, the Alibaba raised by 3% is also rare.

The final price of Twitter is 30% higher than the original price, and Facebook is also 9% higher. Even the Jingdong that landed on the stock market four months ago is priced at 6% higher than the initial price.

Generally speaking, the company's IPO pricing is very particular.

Companies want their stocks to go up rather than down, so they can't take up the potential for price, but set aside room for growth.

However, if the share price rises too large, it indicates that the shares of the company are undervalued, and the underwriting guilds will therefore be criticized.

The Alibaba only raised 2 US dollars, apparently choosing a conservative route.