Alibaba Group Holding Ltd’s initial public offering now ranks as the world’s biggest in history at $25 billion, after the e-commerce giant and some of its shareholders sold additional shares.<\/p>\n
Overwhelming demand saw the IPO initially raise $21.8 billion and then send Alibaba’s stock surging 38 percent in its debut on Friday. That prompted underwriters to exercise an option to sell an additional 48 million shares, a source with direct knowledge of the deal said.<\/p>\n
The IPO surpassed the previous global record set by Agricultural Bank of China Ltd in 2010 when the bank raised $22.1 billion.<\/p>\n
Under the option, Alibaba agreed to sell 26.1 million additional shares and Yahoo Inc 18.3 million, netting the two companies an extra $1.8 billion and $1.2 billion respectively.<\/p>\n
Alibaba’s Jack Ma agreed to sell an extra 2.7 million shares and company co-founder Joe Tsai agreed to sell 902,782 additional shares, according to the prospectus.<\/p>\n
The source declined to be identified as the details of the additional sale have yet to be made official. Alibaba declined to comment.<\/p>\n
Citigroup Inc , Credit Suisse Group AG , Deutsche Bank , Goldman Sachs Group Inc , JPMorgan Chase & Co and Morgan Stanley acted as joint bookrunners of the IPO.<\/p>\n
Rothschild was hired as Alibaba’s independent financial advisor on the deal.<\/p>\n
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