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| Alibaba launches biggest IPO in American history as shares open at $92.70 | Alibaba launches biggest IPO in American history as shares open at $92.70 |
| (about 1 hour later) | |
| The biggest ever share sale in the US got off to a flying – if delayed – start on Friday as shares in Alibaba, the Chinese internet giant, started trading in the New York Stock Exchange at $92.70 – much higher than their initial $68 price. | The biggest ever share sale in the US got off to a flying – if delayed – start on Friday as shares in Alibaba, the Chinese internet giant, started trading in the New York Stock Exchange at $92.70 – much higher than their initial $68 price. |
| The sale of China’s biggest online retailer has triggered a frenzy among investors clamouring to buy into the the world’s fastest growing market and a new tech titan. Shares soared to $95 in early trading before drifting down to around $90, 32% above the start price and instantly making the company one of the most valuable in the world. | |
| Founded by Jack Ma, a former English teacher who started the site from his one-bedroom apartment in Hangzhou in 1998, Alibaba now controls 80% of online commerce in China. | Founded by Jack Ma, a former English teacher who started the site from his one-bedroom apartment in Hangzhou in 1998, Alibaba now controls 80% of online commerce in China. |
| Alibaba’s share sale was expected to start at 10:30am but was delayed as officials worked there way through a huge number of orders from retail investors. Over 1,700 investment firms worldwide are believed to have put in orders for shares. | Alibaba’s share sale was expected to start at 10:30am but was delayed as officials worked there way through a huge number of orders from retail investors. Over 1,700 investment firms worldwide are believed to have put in orders for shares. |
| Sam Hamadeh, chief executive of analyst PrivCo said the delay was unusual. “But this is an unusual IPO because it so large,” he said. He pointed to Facebook’s IPO in 2012, which proved a disaster as the Nasdaq’s systems were overwhelmed by orders for what was then the largest tech initial public offering of all time. “They clearly want to get this right,” he said. | Sam Hamadeh, chief executive of analyst PrivCo said the delay was unusual. “But this is an unusual IPO because it so large,” he said. He pointed to Facebook’s IPO in 2012, which proved a disaster as the Nasdaq’s systems were overwhelmed by orders for what was then the largest tech initial public offering of all time. “They clearly want to get this right,” he said. |
| Ma rang the opening bell at the NYSE on Friday morning amid scenes of excitement among traders. “NYSE floor hasn’t been this active since the late 80s,” Jordan Terry, founder of Stone Street Advisors tweeted. | |
| It was easy to see why traders were so affected by Alibaba’s magic. At $90 the company is valued at $222bn, more than Facebook ($200bn) and more than Amazon and eBay combined. The $21.8bn Alibaba raised from the sale was equal to all the IPOs in the first six months of this year. | |
| In an interview with CNBC Ma said he believed that his customers and employees should come before shareholders but added: “I am very honoured and so excited... the responsibility I’ve been thinking about the next five to 10 years is how can I make sure these shareholders are happy.” | |
| China’s richest man (his fortune is now close to $20bn) told CNBC that he had got the idea for his business when he visited the US and looks to Forrest Gump for inspiration. Ma said he had watched the Tom Hanks movie at least 10 times. | |
| “Every time I’m frustrated, I watch the movie,” he said. “I watched the movie again before I came here. It’s telling me, ‘no matter whatever changes, you are you.’” | |
| Ma said he would use the money to build the business in China, Africa, South East Asia, Europe and the US. |