Chinese e-commerce firm Alibaba.com saw its share price more than double on its first day after an initial public offering (IPO).Its stock ended trading yesterday (November 6th) at 39.50 Hong Kong dollars, up from the offering price of 13.50, giving the company a market value of $25.7 billion.
According to the Times, it is the biggest technology IPO since Google raised $1.66 billion three years ago.
At its final price for the day, Alibaba.com traded at around 140 times 2008's estimated earnings per share. It is now Asia's second largest internet company after Yahoo! Japan.
Speaking to reporters after a listing ceremony, company founder Jack Ma stated: "The price set is reasonable. I said it two weeks ago and today's performance has proven me right.
Some people who had missed out on the opportunity to get involved in Google's IPO were not prepared to do likewise with Alibaba's, he added.
Commenting on the impressive share price rise, Rafe Xu, an analyst at Sinopac Securities Asia, said: "It's a high valuation, but if Alibaba can use its leadership position in the e-commerce market to get more Chinese businesses to pay for its services, it will justify it," the Los Angeles Times reports.
The company, which provides a platform to facilitate e-commerce between buyers and sellers around the world, was founded in 1999 by Mr Ma, a former school teacher.
