The Chinese e-commerce giant Alibaba has finally made its public debut in the US market on Wall Street and the market watchers’ say it has hit the bull’s eye by record numbers.
Alibaba made the initial public offering (IPO) of its stock at the price of USD 68 or an estimated total value of nearly USD 22 billion.
The company started trading at the New York Stock Exchange (NYSE) under the name BABA.
The Chinese giant, which has pulled enough attention since it made its IPO decision public, ended its first day of trading at USD 93.31 per share as a stock in the American markets.
The stock rose 36 percent to nearly USD 100 per share in the opening trade at the Wall Street.
Giving close insight about the IPO to the investors, Benedict P. Willis III, from Princeton Securities Group, said, “Investors must make one thing clear in mind before buying Alibaba that they are actually buying the holding company that is based in the Cayman Islands and not buying the actual rights to the firm itself based in China.”
While some financial analysts think that like any other IPO Alibaba to is expected to be overpriced. However, others are worried about opaque corporate governance of the company.
The jump in the price of the company’s shares showed the huge interest of the investors in Alibaba IPO. As the trading began today, it showed that most of the shares were gone to asset management firms and very few were available to individual investors.
Glenn P Carell, an IPO specialist at Market Maker, said, “People have to realize this is the biggest IPO ever. You want to take your time, get it right, make sure all the buy-side and sell-side know what is going on. And you want to make sure they all have their limits in at the same time so you don’t want anybody to be surprised at the same time.”
The company is valued at over USD 167 billion, which is far more than some blue chip American firms like IBM, General Electric and Procter & Gamble.