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Tue 23 Sep 2014 11:51 AM

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Alibaba IPO ranks as world's biggest after additional shares sold

Overwhelming demand saw the IPO initially raise $21.8 billion and then send Alibaba's stock surging 38 percent in its debut on Friday

Alibaba IPO ranks as world's biggest after additional shares sold
(AFP/Getty Images)

Alibaba Group Holding Ltd's initial public offering 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 percent in its debut on Friday. That prompted underwriters to exercise an option to sell an additional 48 million shares, a source with direct knowledge of the deal said.

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.

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.

Citigroup Inc, Credit Suisse Group AG, Deutsche Bank, Goldman Sachs Group Inc, JPMorgan Chase & Co and Morgan Stanley acted as joint bookrunners of the IPO.

Rothschild was hired as Alibaba's independent financial advisor on the deal.

Zuhair B 5 years ago

Iphone, Samsung, Facebook and now Alibaba, I feel like some star struck consumers we have overplayed the influence of the products of these companies on us and have only managed to make these companies extremely rich, I have never owned an Iphone or a Samsung and did not feel the need as well, hardly found facebook engaging (in fact I long for the novelty of some mystery in the lives of my friends and family rather than have them unravel their daily routines) and then having searched Alibaba's site for sellers have yet to strike a deal, the information is overwhelming, over 1000 sellers for one commodity! and they all respond exactly the same way, similar pricing, similar terms wow how do you decide? So I prefer the old fashioned agent, word of mouth to source my requirements the tried and tested route which has worked well for my business, I wonder considering the valuations Alibaba is reaching does it have that same dramatic impact on our lives or the power to change anything?