Home » Pay News » Alibaba Sets Record with $25 Billion IPO (Sept. 22, 2014)
Print view|Purchase Reprint
09.22.14

Alibaba Sets Record with $25 Billion IPO (Sept. 22, 2014)

Last week’s initial public offering of Chinese e-commerce giant Alibaba Group exceeded even the outsized expectations of most observers, raising $25 billion and setting a new world record for an IPO. Demand by investors during the company’s Friday New York Stock Exchange debut initially raised $21.8 billion and caused the share price to surge by 38 percent over its $68 initial pricing. The interest prompted Alibaba’s underwriters to exercise an option to sell an additional 48 million shares, pushing the total offering size to the $25 billion mark—past the previous IPO record, held by Agricultural Bank of China, which raised $22.1 billion in 2010. Shares of Alibaba ticked down slightly during trading today, selling at around $89 as of early afternoon, down from $92.70 at the start of trading.

Formed in 1999, Alibaba has since grown to dominate online commerce in China, with 24,000 employees and revenue of $7.5 billion across multiple e-commerce and payments platforms. Perhaps more importantly, the company is well-positioned to capitalize on the predicted surge in Chinese online shopping over the next few years. McKinsey & Co. projects e-commerce in China to reach $395 billion next year, tripling in size since just 2011.

See related stories:

This entry was posted on Monday, September 22nd, 2014 at 2:01 pm and is filed under Pay News, Pay World.

Comment

Your email address will not be published. Required fields are marked *

By clicking below, I acknowledge that my contact information will be shared with the companies whose files I am accessing on Pay Connect so they can contact me directly about their products or services. Please refer to their privacy policies for details on how your information will be used. Paybefore uses cookies to store this data so you will not need to re-enter it.

To sign up for Paybefore e-newsletters and announcements, click here.  http://paybefore.com/enewsletter-subscriptions/

  • This field is for validation purposes and should be left unchanged.
X