Alibaba’s market capatilisation post-IPO has reached more than $230bn.
Alibaba’s Initial Public offering in the New York Stock Exchange has become the world’s biggest IPO offering at $25bn.
Initially the company and investors were anticipating that the e-commerce giant would raise around $21.8bn, but the stock prices soared 38% to $93.89 per share on Friday during the offering.
Reports suggest that after seeing the overwhelming response, the bankers decided to sell additional 48 million shares which included 2.7 million shares of company founder Jack Ma , co- founder Joe Tsai sold 902,782 additional shares and Yahoo’s sold 18.3 million shares.
Not only did Alibaba surpass the valuation of Amazon, but also send its market capitalisation soaring to $230bn which is now bigger than that of Facebook, JP Morgan and Procter & Gamble, based on its closing share price.
Alibaba also managed to surpass Bank of China’s 2010 offering when it managed to raise $22.1 bn.
Credit Suisse Group, JPMorgan, Citigroup, Deutsche Bank, and Goldman Sachs, acted as joint book runners for the IPO issue.
The company has not officially declared the sale of the additional shares.