NEW YORK: Alibaba has debuted as a publicly traded company and swiftly climbed more than 40% in a mammoth IPO that offered eager investors seemingly unlimited potential for growth and a way to tap into the burgeoning Chinese middle class.
The sharp demand for shares sent the market value of the e-commerce giant soaring well beyond that of Amazon, eBay and even Facebook.
The stock trading under the ticker “BABA” opened at US$92.70 shortly before noon ET and quickly rose to a high of US$99.70, before paring gains to close at US$93.89. Some 271 million shares changed hands, more than double the turnover on Twitter Inc’s first day last year, although still short of volume for the General Motors Co and Facebook Inc IPOs.
Jubilant CEO Jack Ma stood on the floor of the New York Stock Exchange as eight Alibaba customers, including an American cherry farmer and a Chinese Olympian, rang the opening bell.
The company’s online ecosystem stands apart from most e-commerce rivals because it does not sell anything directly, preferring to connect individuals and small businesses. It enjoyed a surge in US popularity over the past two weeks as executives made sales pitches centred on Alibaba’s strong revenue and big ambitions.
