Technology

Alibaba’s $25bn IPO ranks as largest in financial history

Chinese e-commerce giant sells additional 48m shares following Friday’s stock market launch

Billionaire Jack Ma, chairman of Alibaba, speaks during a Bloomberg Television interview on the floor of the New York Stock Exchange (NYSE) on Friday . Alibaba, the e-commerce company started in 1999 with $60,000 cobbled together by Ma, cemented its status as a symbol of China’s economic emergence by raising $21.8 billion in a US initial public offering. A further sale of shares has brought this total to $25 billion. Photograph: Scott Eells/Bloomberg

Mon Sep 22 2014 - 10:50

Alibaba Group initial public offering last Friday now ranks as the world's biggest in history at $25 billion, after the e-commerce giant and some of its shareholders sold additional shares.

Overwhelming demand saw the IPO initially raise $21.8 billion and then send Alibaba’s stock surging 38 per cent in its debut on Friday. That prompted underwriters to exercise an option to sell an additional 48 million shares, it is understood.

The IPO surpassed the previous global record set by Agricultural Bank of China Ltd in 2010 when the bank raised $22.1 billion.

Under the option, Alibaba agreed to sell 26.1 million additional shares and Yahoo Inc 18.3 million, netting the two companies an extra $1.8 billion and $1.2 billion respectively.

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Alibaba's Jack Ma agreed to sell an extra 2.7 million shares and company co-founder Joe Tsai agreed to sell 902,782 additional shares, according to the prospectus. The source declined to be identified as the details of the additional sale have yet to be made official.

Alibaba declined to comment.

Reuters

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