Shares of Alibaba Group Holdings Ltd. soared 38% on its very first day of trade on Friday drawing attention world-wide. The market-value of China's largest e-commerce company touched $231 billion when the trading session ended. The IPO of this Chinese e-commerce firm has created history.
Initially, the company had announced to offer its shares for $66. But, on Friday the stock opened at $92.70 before noon and quickly rose to a high of $99.70 before ending at $93.89 per share.
"This is the most anticipated event I've ever seen in my 20-year career on the floor of the NYSE. The company is profitable, unlike some of its competitors, and it is a way for traders to tap into the Chinese growth story," Reuters quoted Mark Otto, partner with J. Streicher & Co, who trades on the NYSE floor.
The company's revenue was recorded at $3.7 billion in 2014, which is $1.7 billion higher than previous year.
RJ Hottovy, stock analyst from Morning Star opined that Alibaba's revenue is expected to grow in the next couple of years. The deal is expected to make new millionaires out of Alibaba's managers, software engineers and other employees of the company.
Founded by Jack Ma, a former teacher, in his apartment in 1999, Alibaba now accounts for 80% online sales in China. Jack Ma ranks among the wealthiest of China's billionaires.