New York: A buying frenzy sent Alibaba shares sharply higher as the Chinese online giant made its historic Wall Street trading debut. Alibaba leapt from an offering price of $68 to $92.07 in the first trades and then headed to nearly $100 before settling back at the close to $93.89, a hefty gain of 38%.
By raising $25.02 billion, Chinese online giant Alibaba broke the record for the largest initial public offering in history, after investment underwriters exercised the option for 48 million extra shares, bringing the total to 368 million.
With the surge in its share price, Alibaba’s market value jumped to more than $220 billion – making it bigger than Facebook ($199 billion) and Amazon ($151 billion).
The rise also lifted Ma’s personal net worth to some $17 billion, making him the richest person in China, according to Forbes magazine.
