Advertise with

Alibaba off to strong start; gains 38% on first day of trading - USA
Alibaba off to strong start; gains 38% on first day of trading - USA

Alibaba off to strong start; gains 38% on first day of trading - USA

MARKETING NEWS - Sep 22nd 2014, 13:37

New York – Chinese e-commerce giant Alibaba Group Holding Ltd. on Friday closed its first day of trading, on the New York Stock Exchange, with its shares up 38% from its I.P.O., closing at $93.89. 

The stock opened for trade on Friday at $92.70 shortly, a 36% jump above its initial public offering price of $68 a share. More than 100 million shares changed hands in composite trading in the first 10 minutes of trading.

The opening price valued Alibaba at $228.5 billion, beating the value of other Internet companies such as, EBay, and Facebook. The company’s market value was over $231 billion as of the end of Friday’s session.

Alibaba and major shareholders, including top company executives and Yahoo, which owns 22% of the company, intended to sell 320.1 million shares, or roughly 13% of the company, in the IPO. The stock trades on the New York Stock Exchange under the symbol BABA. The company and its major shareholders raised $21.8 billion in the initial offering, surpassing the value of the previous largest IPO in U.S. history, the $19.7 billion raised by Visa Inc. in a 2008 IPO.

The company, which essentially utilises an eBay model, was co-founded by Jack Ma in his apartment in 1999.

It currently accounts for 80% of online sales in China. Alibaba earned $3.7 billion in the 12 months ended March 31, 2014, up about $2 billion from the prior year.

With Alibaba finally out of the gate, some industry experts were starting to focus in on the company’s payment engine, Alipay, engine that is used by 300 million Chinese consumers (and growing).

“The continued potential/expected growth for Alipay is enormous, especially considering there are no transaction fees for consumers,” said Mark Ranta, senior solutions consultant for ACI Worldwide.From 

Read more about: new york | facebook | ebay | china | alibaba

Related News

Chinese spending hits record high on Singles' Day
13/11/2019 - 13:53
Chinese consumers spent a record amount on Alibaba platforms on Monday during the annual “Singles’ Day” buying spree, the world’s biggest 24-hour shopping event, which was launched with a glitzy show by US singer Taylor Swift.

Alibaba seeks $15bn in a Hong Kong share sale
12/11/2019 - 14:27
Alibaba Group is planning a listing hearing early next week and is seeking to raise as much as $15bn in a Hong Kong share sale, people familiar with the matter say, moving ahead with the city’s largest first-time stock offering since 2010.

How a US-China trade deal could benefit SA
11/11/2019 - 09:53
Africa is poised to become the “land of opportunity” for bond and equity investors should the US and China strike a trade deal, Bank of America (BofA) says.

Shoemaker Vans treads wearily as China fumes over Hong Kong
09/10/2019 - 13:20
US sports brand Vans has removed “a small number” of submissions in a sneaker design competition including one apparently giving a shout out to Hong Kong’s pro-democracy protests, as companies weigh the risks of angering China.

Alibaba set for new era as flamboyant Jack Ma departs
11/09/2019 - 09:33
Alibaba chair Jack Ma has stepped down from the Chinese group, leaving his handpicked successor a daunting task of steering the $460bn juggernaut at a time when the market for its core e-commerce business has slowed sharply.