Alibaba surpassed Facebook Inc. by market capitalization on its listing day by closing with a valuation of more than $231 billion. Alibaba shares zoomed 38% above its initial offer price to close at $93.89 in New York.
The Chinese e-commerce company is now behind Google, Apple and Microsoft only in market size among US tech companies. Alibaba’s $21.8 billion IPO was the biggest-ever for a tech company, powered by the growth in China’s e-commerce. With an offer price of $68 a share, Alibaba was valued at 29 times the expected earnings for the year. Facebook is worth $201.6 billion as on date.