Alibaba Group Holding's initial public offering now ranks as the world's biggest in history at $25 billion, after the e-commerce giant and some of its shareholders sold additional shares.
Overwhelming demand saw the IPO initially raise $21.8 billion and then send Alibaba's stock surging 38% in its debut on Wall Street on Friday.
That prompted underwriters to exercise an option to sell an additional 48 million shares, a source with direct knowledge of the deal said.
The IPO surpassed the previous global record set by Agricultural Bank of China in 2010 when the bank raised $22.1 billion.
Under the option, Alibaba agreed to sell 26.1 million additional shares and Yahoo 18.3 million, netting the two companies an extra $1.8 billion and $1.2 billion respectively.
Alibaba's Jack Ma agreed to sell an extra 2.7 million shares and company co-founder Joe Tsai agreed to sell 902,782 additional shares, according to the prospectus.
The source declined to be identified as the details of the additional sale have yet to be made official. Alibaba also declined to comment.
Alibaba is nearly unknown to most Americans but is ubiquitous in China. The company, which operates China's largest Internet shopping destination, Taobao, and retail site Tmall.com, earned $3.7 billion in the 12 months to the end of March, up about $2 billion from the prior 12-month period.
At its closing share price on Friday night, Alibaba has a market value of $231 billion, exceeding the combined market capitalisations of Amazon and eBay, the two leading US e-commerce companies.
Alibaba is valued at 39 times its estimated earnings per share for its current fiscal year, which ends in March.
That is right in line with Facebook's valuation of 39 times forward earnings but nowhere near the lofty valuation of Amazon.com's multiple of 264, according to Thomson Reuters Starmine data.
