More shares issued to make Alibaba public offering biggest ever

The move to exercise what is known as the “green shoe” option as part of Alibaba’s initial public offering was widely expected if its shares performed well in the public market.

Last Friday, Alibaba shares soared 38 per cent in its first session, as investors clamoured for a piece of the company.

The flotation is seen as a massive bet on China’s growing middle class.

If the underwriters issue the maximum amount of 48 million additional shares at the offer price of $68 (£42) per share, this increases the amount initially raised last week from $21.8bn (£13.3bn) to $25bn (£15.3bn).

It is not yet known how many additional shares were issued.

Alibaba declined to comm- ent.

Last week underwriters said they would decide on whether to exercise the option over the next week or two, depending on how the shares traded.

Underwriters on the Alibaba deal include Morgan Stanley and JPMorgan Chase & Co, with Rothschild, which does not have underwriting operations, advising Alibaba on the deal.

At its closing share price on Friday, Alibaba had a market value of $231bn (£141bn), exceeding the combined market capitalisations of Amazon and eBay, the two leading US e-commerce companies.

Alibaba is seen as a Chinese e-commerce powerhouse and was named after a fabled, poor woodsman who discovers a thieves’ den full of treasures,