The initial public offering, the world's largest IPO ever, raised $21.8 billion on Thursday, following the pricing of Alibaba's American Depository Receipts on the NYSE at $68 a share. Including the overallotment, Alibaba raised $25 billion, the largest in the world ahead of Agricultural Bank of China, according to Dealogic. Prior to Alibaba's debut, the largest U.S.-listed IPO was Visa's (V) , which raised $19.7 billion when it went public in 2008.
Alibaba opened trading on Friday at $92.70, a 36% jump from its IPO price. More than 271 million shares of Alibaba's ADRs changed hands on Friday to close at $93.89, up 38% from its IPO price.
Beijing-based Alibaba had previously raised the price on its IPO following strong investor demand as China's largest Internet company continues to post impressive results.
Several analysts have initiated coverage. Here's what they had to say.
Youssef Squali, Cantor Fitzgerald (Buy; $90 PT)
Last week's market focus was on the record-breaking Alibaba IPO, which raised ~$21B and ended on its first day up a strong 35%, making it one of the most visible IPOs of all time. With this event behind us, and prospects for Alibaba's first earnings reporting season only weeks away, our attention quickly shifts to its 2Q:FY15 results and how management plans to "manage" the Street going forward. Given all the hype built around the IPO, we believe expectations are running high, creating an environment for much volatility short-term. Long-term, we believe this is one of the best plays on growth in global ecommerce.
BABA started trading last Friday, and with it came the opportunity to invest in China's largest e-commerce platform, which we believe has the potential to dominate global online commerce over time. We initiated coverage with a BUY and $90 PT, a level reached on day one of trading! We believe a differentiated pricing model, strong brand, and unmatched scale give Alibaba a sustainable unfair competitive advantage relative to peers both in and outside China. With the IPO behind us, our eyes turn to the company's first public quarterly results in a few weeks, and to how management will deal with the Street going forward. Estimates are only starting to form with on-going initiations, but given all the hype built around the IPO, we believe expectations are running high, creating an environment for much volatility short-term.