The founder of Alibaba, the former language teacher of Communist China, Jack Mae (47), has made an incredible journey. He knows little about data and nothing about programming but has built one of the world's largest online companies in a few years. He is obviously one of the most visionary entrepreneurs of our time.
Alibaba celebrates successful stock market debut in Hong Kong
Alibaba, the Internet retailer, raised $ 11.3 billion in Hong Kong on Tuesday. Just a few minutes after the start of trading, the stock rose by almost 8 percent, rising from the initial price of 176 Hong Kong dollars to 189.50 Hong Kong dollars.
In total, 500 million shares were issued, and a further 75 million shares can be sold via a so-called over-allotment option. Alibaba has thus raised about 88 billion Hong Kong dollars (11.3 billion US dollars) in its last IPO. (Initial public offering)
The shares are equally tradable on both exchanges and can be bought in New York and sold in Hong Kong. Greater price differences are therefore unlikely.
According to analysts, the step for Alibaba is also a hedge in the trade conflict between the US and China.
Proof of trust for Hong Kong financial center
Alibaba is the most valuable company in Asia just now.
CEO Daniel Zhang celebrated the stock market launch as an important milestone in the company's history. The Chinese e-commerce giant has been listed on the New York Stock Exchange since 2014, but has now returned to Hong Kong, attracting billions from investors in the process.
Hong Kong has been led by violent political protests for months. The IPO of Alibaba is thus also a vote of confidence for the financial center Hong Kong.
“We came home. We came back to be listed in Hong Kong,” said Daniel Zhang to big applauds from the trading floor.
Charles Li, CEO of the Hong Kong Stock Exchange, approves the company for carrying out the listing.
“I am very grateful that, after five years of traveling, Alibaba has finally returned home. I am also pleased that they have chosen to come despite the difficulties and challenges we are going through here in Hong Kong,” Li said.
“This is a must have stock for the portfolio of a local investor,” said Dickie Wong, head of research at Kingston Securities, a broker.
Alibaba's stock exchange symbol is "9988" – a number that symbolizes eternal prosperity in Chinese culture. The market value of the internet giant is at the time of writing 509 billion Hong Kong dollars. That is not bad for a company officially founded in 1999.
Thanks to Jack Mae (47), China is today the worlds most advanced digital market for groceries. Who would believe that ten years ago, even five years ago?