Alibaba, BABA the Chinese e-commerce giant whose magical name and real-world business prospects inspired frenzied interest for months ahead of its record-setting initial public offering, surged more than 32% in its delayed debut Friday on the New York Stock Exchange...
Order imbalances over the intensely hyped, widely sought Alibaba IPO delayed initial trading by more than two hours. American depositary shares of Alibaba Group Holding Ltd., priced at $68, opened at $92.70 once trading finally got under way at 11:53 a.m. ET.
Shares quickly jumped to $99.70 before settling back to about $90 in early afternoon trading. More than 100 million shares traded in the first 20 minutes of trading.
Early indications had shares opening at $80 to $83, but demand was so strong, the offering price had to be revised 10 times.
Scott Cutler, NYSE's global listings chief, said the IPO was repeatedly delayed by massive order imbalances.
"We've got hundreds of thousands of orders,'' Cutler told CNBC after an hour-long delay. "We're chasing to find sellers. Even at these levels, there doesn't appear to be a lot of sellers."
"There's a lot of hype over this stock. An $80 price is not unreasonable - demand could stampede the price,' notes Drew Dorweiler, a Montreal-based business valuation expert with Dartmouth Partners and a trustee of The Appraisal Foundation. "The fundamentals are there for incredible volume and excitement."
Source:http://www.usatoday.com/story/money/business/2014/09/19/alibaba-surges-in-first-day-trading/15828389/
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