Chinese e-commerce giant Alibaba Group Holding Ltd’s initial public offering (IPO) in the United States has made the history as it ranks the world’s biggest IPO at USD 25 billion after the company and some of its shareholders sold their additional shares in the market.
Alibaba has been in news ever since it made the announcement of initial public offering of its shares. Eyeing the heavy profits that Alibaba is all set to raise in the coming times, investors are getting attracted towards the Chinese company.
The overwhelming demand from the investors saw the IPO initially raise USD 21.8 billion, sending Alibaba’s stock surge at 38 percent when the company made the debut at the New York Stock Exchange (NYSE) on Friday.
The impressive figures prompted underwriters to opt for selling an additional 48 million shares, according to reliable sources.
Under the new option, Alibaba sold its 26.1 million additional shares, while Yahoo Inc traded 18.3 million shares, netting the two firms an extra USD 1.8 billion and USD 1.2 billion respectively.
The sources said that Executive Chairman of Alibaba Group Jack Ma sold 2.7 million additional shares, while the company’s co-founder Joe Tsai agreed to sell an extra 902,782 shares.
Alibaba has not yet made the details of the additional sale official.
With its biggest IPO raising, Alibaba had surpassed the Agricultural Bank of China Ltd’s previous global record set in the year 2010 when the bank raised USD 22.1 billion.