Alibaba Raises $1.5 Billion in Share Sale, People Say

Alibaba.com Ltd. raised $1.5 billion in the second-biggest initial public offering sale of an Internet company after Google Inc., said two people with direct knowledge of the matter.

Investors sought more than 180 times the number of shares on offer, the people said. Alibaba.com, the operator of China's largest trading Web site for companies, and its parent sold 858.9 million shares, a 17 percent stake, at HK$13.50 apiece in Hong Kong, the people said. That values Alibaba at about $8.8 billion.

The sale by Hangzhou-based Alibaba, the biggest by a Chinese Internet company, underscores the potential for growth in China. The country may overtake the U.S. as the biggest Web market by users next year, analysts said. The IPO also may lure other local Web businesses to sell stock in Hong Kong, where the Hang Seng Index has jumped 57 percent this year.

``Alibaba is certainly among the most interesting issues to come to market in a long time, given the firm's unique market position, exceptional growth opportunities, and high barriers to competitive entry,'' said Jim Oberweis, who helps oversee $3 billion as president of Oberweis Asset Management Inc. in Lisle, Illinois. Oberweis ordered Alibaba shares.

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