Trading is underway in Alibaba shares following a flotation that could raise a world record sum of $25bn (£15.3bn).
Stock in the Chinese e-marketplace, which priced its initial public offering (IPO) at the top end $68-a-share (£42), was to open up to 28% higher on the New York Stock Exchange (NYSE), according to early indications on the first trades.
Follow first day share price movements here.
It was the biggest flotation in US history at almost $22bn but market experts say the listing is on course to become a world record as underwriters are to exercise an option to buy up more shares to meet demand.
The sale is expected to raise $25bn - more than the $22.1bn by China's AgBank in 2010.
Many investors received fewer shares than they had hoped for and were said to be lining up orders.
NYSE, anxious to avoid a repeat of the glitches which marred Facebook's IPO on the rival Nasdaq exchange in 2012, said extensive testing of its systems had identified no problems ahead of the trading session though it took more than 90 minutes to confirm the opening price.
The NYSE's opening bell was rung at 2:30pm BST as Alibaba customers, brought in to launch the trading day, clapped and smiled.
The company's founder and executive chairman Jack Ma, who started the company in a one-bedroom apartment, has shares that stand to be worth up to $14bn though one of the biggest winners will be Yahoo!
The tech firm's in line to make almost $10bn as it prepares to lower its stake in Alibaba - an investment it made for $1bn in 2005.
Its total holding before trading got underway was valued at $26bn.
No comments:
Post a Comment