Alibaba’s IPO is the Biggest IPO Globally After All

Chinese e-commerce company, Alibaba has finally raised USD 21.8 billion from the initial public offering (IPO) valued the company at USD 168 billion. According to a recent report, it was raising over USD 24 Billion For an IPO. But now, Alibaba falls a little short of the Agricultural Bank of China, which raised USD 22.1 billion in the world’s largest IPO to date. However, it is still the biggest IPO in US History.

Update: At the time of writing this post the initial IPO raised was USD 21.8 billion, however due instantaneous demand, the e-commerce giant and some of its shareholders sold additional shares, sending Alibaba’s stock surging 38 percent in its debut on Friday, and bringing the total value to USD 25 billion as mentioned in a Reuters report.

As per WSJ report, it sold more than USD 320 million shares at a price of USD 68 each, which was increased from an initial USD 60 to USD 66.

Also Read: Alibaba announces collaboration with Weibo to launch payment service

Alibaba’s IPO is followed by Facebook, which secured USD 16 billion from its IPO in 2012 , Visa USD 19.7 billion IPO in 2008 and GM holds USD 18.1 billion in its IPO. It is starting to expand a presence in the U.S and now owns stakes in companies including Uber, Lyft and search engine app Quixey.

The Chinese company which calls itself the “largest online and mobile commerce company in the world,” and generated USD 248 billion of gross merchandise volume in 2013.

In March this year, Alibaba has acquired a 35% stake in Intime Retail, an offline retail company with presence throughout China, for USD 692 million. Alibaba currently operates in China’s ecommerce market with its two major sites viz. Tmall and Taobao. Other recent investments of Alibaba included an undisclosed amount in Sina Corp’s Weibo (18% stake) and USD 800 million in ChinaVision Media Group. (60% stake).

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Also in April, it announced that Alibaba group along with Yunfeng Capital will be acquiring an equity stake in Youku Tudoufor a combined investment of USD 1.22 billion. At present, Alibaba Group has 12 major businesses and affiliated entities, including alibaba.com, Taobao.com, Tmall, Alipay, koubei.com, Aliyun, etao.com, net.cn, Juhuasuan.com, CNZZ, and Onetouch.

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  • Varun

    Sujata
    Nice attempt and a good read.
    I was probably able to spot 2 errors in the article. I hoep you take this positively.
    1. The IPO size certainly is $21.8 bn, but the IPO has another 15% of green shoe option making it a $24bn IPO post exercise of the overallotment / green shoe option by the underwriters. I guess given the huge demand for the IPO, the overallotment option gets exercised by the underwriters within 30 days from the closing of the IPO.
    2. The last statement as to when it went public is not correct.
    Thanks
    Varun Sethi

    • Iamwire

      Thanks for bringing the error into notice, Varun. We have updated the same.