Alibaba’s share price slides 3 per cent on second day of trading
Was Alibaba's IPO too good to be true? Shares in the newly-listed mega-retailer may have surged 38 per cent on their first day of trading on Friday, but investors had clearly calmed down today – its price fell three per cent in early trading.
Alibaba listed on the New York Stock Exchange on Friday at $68 a share, but that jumped on opening, briefly topping $99 before ending the day at $93.89. Today, that dipped as low as $90.64, before rising slightly.
The company's IPO became the biggest in history when a group of bankers exercised a "green shoe" option to buy an extra 48 million shares in the company, pushing up the value of its IPO to $25bn, larger than the $22.1bn the Agricultural Bank of China raised when it listed in 2010, and the $21.9bn raised by Industrial & Commercial Bank of China during its listing in Hong Kong in 2006.