After the opening of much hyped Alibaba Group Holding Ltd (NYSE:BABA) in the market, the shares quickly gained 38% to end at $93.89 on Friday. Softbank Corp (TYO:9984), the biggest shareholder of Alibaba, announced net gains of $4.6 billion after the initial offering.
Masayoshi Son, CEO of Softbank Corp (TYO:9984), said that the company would certainly like to purchase more stakes in the e-commerce giant, although Softbank is satisfied with its current 32% stake. When asked about purchasing more shares of Alibaba Group Holding Ltd (NYSE:BABA), Son said,
“Of course. Anything is possible but we are happy the way it is.”
Son further added that Softbank Corp (TYO:9984) holds Alibaba Group Holding Ltd (NYSE:BABA) as one of its core holdings and he is optimistic about the future growth of the online retailer. He added,
“My point of view is that this is the true beginning of Alibaba. I’m very, very optimistic.”
Softbank Corp (TYO:9984) is likely to book the gains in the half-year ending in September and would rather give a precise figure instead of the rough $4.6 billion in gains. Softbank calculated its gains to highlight the growth in asset value of Alibaba and to indicate the impact of the conversion of preference shares into common stock for the offering.
Another post on InsiderMonkey.com highlighted that the shares of Alibaba Group Holding Ltd (NYSE:BABA) would keep increasing until the end of the year referring from Sara Eisen’s report on CNBC. When compared with the jump in share prices of the famous tech IPOs, Alibaba Group Holding Ltd (NYSE:BABA) stands close to Microsoft Corporation (NASDAQ:MSFT) and Amazon.com, Inc. (NASDAQ:AMZN) with first-day price increase of 33.3% and 29.7% respectively.
Microsoft exhibited a change of 239% in its first year while Amazon showed 298% change, which indicates that much could be expected from the world’s largest e-commerce retailer towards the end of the year.
This article has been written by Prakash Pandey.