Friday, September 26, 2014

Alibaba Group’s shares up 38% in first day trading

News this week: The much anticipated initial public offering (IPO) of China largest e-commerce company, Alibaba Group, was completed last week as its shares began trading on the New York Stock Exchange under stock ticker “BABA”.

Marking the largest IPO in history, 320,106,100 American depositary shares (ADSs) of Alibaba were initially floated at US$68 per share – raising US$21.8 billion. Subsequently on 22nd September, underwriters of the IPO exercised an option to purchase an additional 48,015,900 ADSs at US$68 each to increase the total amount raised in the offering to US$25.3 billion.

Alibaba’s shares opened at US$92.70 and closed at US$93.89 at the first day of trading – a jump of 38% giving Alibaba a market value of US$231 billion. As part of an earlier agreement, Alibaba’s shareholder Yahoo! Inc. now holds a 16.3% stake in the company after selling US$8 billion worth of its shares in the IPO. Alibaba’s single largest shareholder, Japan’s Softbank Corp., now holds a 32% stake.

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1 comment:

BABA said...

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