MOSCOW, September 22 (RIA Novosti) - Alibaba Group Holding Ltd has raised $25.3 billion in its initial public offering making it the biggest IPO in history, the International Business Times reports.
The Chinese e-commerce powerhouse initially raised $21.8 billion after selling 320.1 million shares on Friday. The company’s shares, which were initially priced at $68, rose to $93.89 in the company’s New York Stock Exchange debut.
Thus, Alibaba could go on to sell an additional block of shares exercising a so-called “greenshoe” option, Reuters stated citing an anonymous source. Legally, this is referred to as an “over-allotment option”. It is a provision that allows underwriters to sell up to 15 percent more shares than originally planned. Overall, 48 million shares were sold additionally.
The previous world record was set by Agricultural Bank of China Ltd, one of the China’s four largest banks, raising $22.1 billion in 2010.
Alibaba was founded by Jack MA, a former English teacher, in 1999 and has profited from China's consumer class by dominating the e-commerce industry in the country. The company's board is controlled by a small group of investors.
