Alibaba (NYSE:BABA) makes an impressive debut as shares jump up by 38% in IPO

An e-commerce titan from China, Alibaba (NYSE:BABA), not only has a name with a magical flair to it, but also a real-world approach at handling its business. This combination had inspired the hyperactive interest for a long time even before its Initial Public Offering – a reaction that was pretty ground breaking. Its figures spiked up by 38% on Friday when it made its debuted on the New York Stock Exchange.

Before the shares of Alibaba (NYSE:BABA) Group Holding Ltd. began trading, there was a little delay in initial trade because of the order imbalances over the highly sought after Alibaba IPO.

The price closed at a steady value of $68 on Thursday and it soared up to $92.7 when Alibaba (NYSE:BABA) opened on Friday. During the day’s trading it climbed to a price of $99.70, while the day ended with the shares reaching a price of $93.89.

The total number of shares that were traded that day exceeded 271.6 million; and more than 100 million shares were traded within 20 minutes. While the initial price of the shares indicated by NYSE started at $80 to $83, but soon they climbed up to ten times the original price due to high demand.

According to Scott Cutler, the chief of global listings of NYSE, there was a huge mess up in the balance of orders, which consequently stood in the way of timely trading. In an interview with CNBC, it was revealed that the company had a huge list of orders whereas there weren’t many sellers. It created a scenario where they were frantically looking for some sellers to begin trading. Not many were ready to sell the shares, which shows the stock’s worth.

Alibaba (NYSE:BABA) Group Holding Limited is a Hangzhou based public trade group of ecommerce that is actually based online. Their businesses include online business to business web portals, payment and retail services that are online and search engines for shopping purposes. They also have an impressive cloud computing services, which is data centric.

Alibaba (NYSE:BABA)’s major competitors include very strong companies such as eBay and Amazon. The main center of operation of the company is its own country, People’s Republic of China. It was 2013 when ‘The Economist’ estimated their value to be somewhere between $55 billion and the maximum of $120 billion. The company started in April 1999 and has its headquarters in Hangzhou, China and now they are strong enough to provide their amazing services to the whole world. The company works smoothly under the leadership of Jonathan Lu who is the CEO of the company and Jack Ma who is the Executive.

Alibaba (NYSE:BABA)’s last fiscal year’s revenue was $8.5 Billion, which was in 2013 was $5.5 Billion in the year 2013. The company’s employee number was 22,000 people until March 2014 and they are still hiring more.

Due to an encouraging roadshow piror to IPO Alibaba (NYSE:BABA) had to bump up its price range for IPO from $60 – $66 to $66 – $68. Institutional shareholders were given preference over individual shareholders. Alibaba (NYSE:BABA) options are going to start trading on the 29^th of September.