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Alibaba parts with more shares to smash record for biggest ever IPO

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Alibaba's founder Jack Ma at the New York Stock Exchange before his company's initial public offering

Alibaba's founder Jack Ma at the New York Stock Exchange before his company's initial public offering

REUTERS

Alibaba's founder Jack Ma at the New York Stock Exchange before his company's initial public offering

Alibaba's initial public offering (IPO) now ranks as the biggest ever at $25bn (€19.5bn) after the Chinese ecommerce giant and some shareholders parted with additional shares yesterday following Friday's market debut.

Banks that underwrote the stock floation have earned more than $300m. The fees are equivalent to 1.2pc of the deal - with Alibaba paying $121.8m and shareholders selling stock as part of the deal another $178.6m, according to a filing with the US Securities and Exchange Commission on Monday.

Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan and Morgan Stanley underwrote the deal.

The IPO initially raise $21.8bn but after Alibaba stock surging 38pc on Friday underwriters exercised an option to sell an additional 48 million shares, a source with direct knowledge of the deal said.

It means the IPO has now surpassed the previous €22.1bn record set by Agricultural Bank of China Ltd in 2010.

According to its prospectus, Alibaba had agreed to sell 26.1 million additional shares under the option, and shareholder Yahoo an additional 18.3 million, netting the two companies an extra $1.8bn and $1.2bn respectively.

Alibaba's Jack Ma had agreed under the same option to sell an extra 2.7 million shares and company co-founder Joe Tsai agreed to 902,782 additional shares. The source declined to be identified as the details of the additional sale have yet to be made official. Alibaba declined to comment.(Reuters)

Irish Independent