Alibaba Group Holding Ltd (NYSE:BABA) created a new benchmark in public offerings with first day trade at NYSE where the company marched right ahead of industry leaders in terms of current market capitalization including Facebook Inc (NASDAQ:FB), The Walt Disney Company (NYSE:DIS), and Comcast Corporation (NASDAQ:CMCSA).
Alibaba Group Holding Ltd (NYSE:BABA) became the biggest IPO in U.S. history by surpassing Facebook Inc (NASDAQ:FB)’s $16 billion and Visa Inc (NYSE:V)’s $17.8 billion. Alibaba is by far the largest e-commerce company in the world with transactions over $248 billion in the last fiscal year. The company reported three-fold increase in its profit at $2.0 billion in the second quarter 2014 as compared to the prior year profits of $700 million.
In addition to it, Alibaba Group Holding Ltd (NYSE:BABA) has outpaced Facebook Inc (NASDAQ:FB) at different stands including its 38% surge in share price on its debut compared with 0.6% increase in Facebook shares after its debut in may 2012. However, Alibaba Group Holding Ltd (NYSE:BABA) traded nearly half the number of shares at 271 million on their first day against 566 million shares of Facebook Inc (NASDAQ:FB).
Alibaba Group Holding Ltd (NYSE:BABA) raised more money ($21.8 billion) at their first public offering than the combination of Facebook Inc (NASDAQ:FB) ($16 billion), Twitter Inc (NYSE:TWTR) ($2.09 billion), and Google Inc (NASDAQ:GOOGL) ($1.66 billion). Further, Alibaba Group Holding Ltd (NYSE:BABA) became the eighth most valuable tech company ahead of Amazon.com, Inc. (NASDAQ:AMZN) and Cisco Systems, Inc. (NASDAQ:CSCO).
In terms of surge in opening share prices, Alibaba Group Holding Ltd (NYSE:BABA) with 38% increase in share prices trail behind two U.S. tech companies including Twitter Inc (NYSE:TWTR) with 72.7% increase and Yandex NV (NASDAQ:YNDX) (55.4%).
This article has been written by Prakash Pandey.
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