Alibaba’s initial public offering now ranks as the world’s biggest at $25 billion.Overwhelming demand saw that prompted underwriters to exercise an option to sell an additional 48 million shares.The bankers exercised what is know as a “green shoe” option, which means they buy additional shares from the company to cover stock they sold to meet high investor demand. If the stock had fallen below the IPO price, they likely wouldn’t have bought these extra shares from the company.
IPO has surpassed a previous global record set by Agricultural Bank of China Ltd in 2010, when the lender raised $22.1 billion.
Citigroup Inc , Credit Suisse Group AG , Deutsche Bank , Goldman Sachs Group Inc , JPMorgan Chase & Co and Morgan Stanley acted as joint bookrunners of the IPO.
