Date
18 December 2017
Alibaba chairman Jack Ma (center) rings a bell as the company's shares began trading at the New York Stock Exchange on Friday. Photo: Bloomberg
Alibaba chairman Jack Ma (center) rings a bell as the company's shares began trading at the New York Stock Exchange on Friday. Photo: Bloomberg

Alibaba IPO expands to US$25 bln as greenshoe exercised: WSJ

Alibaba Group underwriters exercised the so-called greenshoe option in the share sale, taking the deal size to US$25 billion and making it the largest-ever initial public offering (IPO) in history, the Wall Street Journal reported Sunday, citing people familiar with the matter.

The move follows hefty demand for the shares as the Chinese e-commerce giant made a spectacular debut on the New York Stock Exchange on Friday. 

Alibaba shares jumped 38 percent on the first day of trading, beating the average 26 percent jump for US-listed technology and Internet deals this year.

The stock opened trade at US$92.70, well above the US$68 IPO price, and finished the day at US$93.89, giving the company a market value of US$231 billion.

The IPO gives Alibaba a formidable war chest for possible acquisitions and product launches to compete with Chinese Internet rivals Tencent Holdings and Baidu Inc. and allows it to quickly expand in overseas markets including the US should it choose to do so, the Journal noted.

Chairman Jack Ma, a former English teacher who founded Alibaba 15 years ago, now ranks among the wealthiest of China’s billionaires. He sold nearly US$1 billion worth of stock in the IPO, and continues to hold a stake in the company worth about US$18 billion at Friday’s close.

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RC

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