Alibaba is the new IPO king after listing at $68

Alibaba, the Chinese e-commerce giant, secured its place in history Thursday as the largest US-listed initial public offering (IPO) of all time.

The stock was priced at $68 per share. That’s at the top of the expected range, signaling strong demand.

Only large investors like hedge funds are typically able buy at this IPO price. Alibaba’s shares will begin trading Friday under the ticker symbol “BABA” on the New York Stock Exchange.At that point, anyone can buy the stock.
The IPO deal raised $21.8 billion, the largest ever for a company listed on an American exchange. In any deal like this, the investment banks that help make it happen have the option to purchase additional shares. If you include all of those shares, the IPO would raise $25 billion – a world record.
Alibaba, which was founded by former English teacher Jack Ma, is now one of the biggest tech companies in the world.

If you’ve never heard of Alibaba, you’re definitely not alone.

The Chinese company is often described as a mash-up of eBay, Amazon and PayPal. Alibaba has little presence in the US, though that’s expected to change. At the moment, it owns a stake in ride-sharing service Lyft.

Alibaba is hitting the public markets with some elite Silicon Valley company. The IPO values Alibaba at a whopping $167.6 billion. That’s more than double eBay’s $64 billion market value and even tops the market cap of 20-year-old Amazon.com.

Source: CNN