Alibaba share price increased as much as 7.7% during its first morning of trading on the Hong Kong Stock Exchange soon after the market opened.
The shares climbed from their listing price of HKD $176 (a 2.9% discount from their closing price on the New York Stock Exchange on Tuesday to HKD $189.50.
Alibaba issued 500 million new ordinary shares for the secondary offering, plus an over allotment option for 75 million shares that will allow it to raise even more money if exercised.
The company had initially considered holding its IPO in Hong Kong, but at the time, its stock exchange did not allow dual-class shares.
In a press statement, Alibaba CEO Daniel Zhang said “As a result of the continuous innovation and changes to the Hong Kong capital market, we are able to realize what we regrettably missed out on five years ago. Today, we realized what we said then: ‘When conditions allow, we will come back to Hong Kong.”