Alibaba IPO: The Long Path to Companys First Trade

The transcript discusses the success and challenges of a company's IPO, highlighting institutional interest and stock trading dynamics. It addresses corporate governance issues, particularly the control of voting stock and the VE structure, drawing comparisons with other internet companies. The valuation of Alibaba is analyzed in relation to global and Chinese market players. Additionally, the transcript explores currency risks associated with the Chinese government and Alibaba's international expansion strategy.

What was a significant factor in the success of Alibaba's IPO?

• Lack of institutional interest

• Oversubscription and price increase

• Low demand from investors

• Jack Ma's absence from the roadshow

How does Alibaba's corporate governance structure compare to companies like Google and Facebook?

• Alibaba has a completely different structure with no similarities

• Alibaba's structure is identical to Google and Facebook

• Alibaba's founders control a majority of the voting stock

• Alibaba has no voting stock control by founders

What is a unique risk associated with Alibaba's VE structure?

• It is identical to the structure of US companies

• There is no risk associated with VE structure

• The founders have no control over voting stock

• The Chinese government can invalidate contracts

How does Alibaba's valuation compare to Amazon and eBay?

• Alibaba's valuation is the same as Amazon and eBay

• Alibaba's valuation is not compared to Amazon and eBay

• Alibaba is valued at a discount compared to Amazon and eBay

• Alibaba is valued at a premium compared to Amazon and eBay

What might reduce Alibaba's currency risk as it expands internationally?

• Expanding in Europe, Asia, Africa, and Latin America

• Reducing international business operations

• Focusing solely on the Chinese market

• Ignoring currency fluctuations