Alibaba Gains 38% On First Day Of Trading (BABA, YHOO)

Myles Udland

Alibaba opened for trade at $92.70 per share, up 36% from where its IPO priced.

On Friday, Alibaba shares closed at $93.89, up 38% from its IPO pricing.

On Thursday night, Alibaba priced its IPO at $68 per share. At that price, the company raised $21.8 billion at a valuation of about $168 billion.

At its open price of $92.70, Alibaba's market cap is over $228 billion, and the company raised $29.7 billion.

This capital raise marks the largest IPO ever for the US stock market, topping Visa's previous record of $17.9 billion.

Shortly after opening for trade, Alibaba shares surged to $99 per share, or up more than 45% from its IPO price.

Near 12:05 p.m. ET, shares of Alibaba were off their best levels of the day and trading near the IPO price of $92.70. 

As of 12:30 p.m. ET, Alibaba shares had fallen below their initial trade of $92.70 and were trading below $91 per share, about a 32% increase from its $68 IPO price. 

Near 1:30 p.m. ET, Alibaba shares were trading near $91 after briefly trading hands below $90. 

Headlines from Reuters at 10 a.m. ET said broker TD Ameritrade had customer orders for Alibaba exceeding customer orders for Twitter's IPO by 2 1/2 times. TD Ameritrade also said that as of 6:45 a.m. Friday, half of the company's order book was for Alibaba shares.

On CNBC, Scott Cutler of the NYSE said they were seeing "hundreds of thousands of orders" for Alibaba shares.

CNBC reported that the first indication for Alibaba shares was at $80 to $83 per share.

On Twitter, the FT's Eric Platt reported at about 10:20 a.m. ET that the range was updated to $82 to $85. 

On CNBC, the NYSE's Scott Cutler said the IPOs underwriters would use the "greenshoe" provision, which allows them to increase the share offering by 15%, which would bring Alibaba's capital raise to $25 billion. 

At about 10:30 a.m. ET, CNBC's Carl Quintanilla said the new indication was that shares would open between $84 and $87.

At 10:45 a.m. ET, CNBC's Bob Pisani reported that the indication was upped to $86 to $88.

At 10:52 a.m. ET, Pisani reported that the indication was upped to $87 to $89.

At about 11 a.m. ET, CNBC reported that the range was increased to $88 to $90. On CNBC, the NYSE's Scott Cutler said that there were still 10 million shares that needed to be matched with buyers.

At 11:05 a.m. ET, the range was upped to $89 to $91. At the midpoint of this range, or $90 per share, the company would raise $28.9 billion and be worth just less than $222 billion.

At 11:15 a.m. ET, the range was tightened to $90 to $91.

At 11:22 a.m. ET, data from Reuters showed that the indication had been upped again to $91 to $92.

At 11:27 a.m. ET, Reuters data showed the range was increased again to $92 to $93. 

CNBC reported that Alibaba would not start trading for two to three hours, and oBloomberg TV on Thursday nightGeorge Pearkes of Bespoke Investment Group explained why it would take some time for market in Alibaba shares to get put together and the stock begin trading on Friday. 

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