Alibaba Group has reportedly sold additional shares of the company, making the listing of the Chinese e-commerce firm the biggest in history.
Alibaba shares opened nearly 2 percent lower in early trading on Monday. (Get the latest quote here.)
Reuters reported on Monday, citing sources who have direct knowledge of the deal, that bankers of Alibaba have exercised a “green shoe” option by buying an additional 48 million shares from the company to cover stock they sold to meet high investor demand.
This takes the value of the deal to $25 billion, exceeding the $22.1 billion IPO by Agricultural Bank of China in 2010 and the $22 billion listing by ICBC in 2006. The pricing of Alibaba’s IPO on Thursday at $68 per share initially raised $21.8 billion.
Alibaba and several shareholders sold 320.1 million American Depositary Shares in the offering. But according to the IPO prospectus, underwriters had the option to sell additional shares from Alibaba, Yahoo Inc and Alibaba co-founders Jack Ma and Joe Tsai to meet high investor demand.
Alibaba began trading on the New York Stock Exchange on Friday with a bang, soaring 38 percent to close at $93.89 per share.