Alibaba's founder and chairman Jack Ma (middle) rang the opening bell in celebration on Friday
A Chinese internet firm started by a former English teacher was catapulted into the business superleague last night.
Online retail giant Alibaba was valued at £140billion, more than Walt Disney and Coca-Cola, after the biggest stockmarket flotation in US history.
The successful share sale saw the fortune of founder Jack Ma swell to £11billion, confirming him as China’s richest man.
Mr Ma, known for his flamboyant gestures including dressing up as Lady Gaga for a staff event, has come a long way from his humble beginnings.
The 50-year-old was born in the Chinese city of Hangzhou, but twice failed his college entrance exam.
He later enrolled on a teacher training course before working as an English teacher on less than £10 a month.
A visit to the US in 1995 saw him realise the potential of the internet – and four years later, he launched a website allowing firms to buy and sell goods online.
Alibaba now accounts for more than 80% of internet retail sales in China, and handles more transactions than eBay and Amazon combined.
The firm raised more than £15billion from today’s share sale, which it will use to expand its businesses in the US and Europe, where it is widely unknown.
The shares, priced at $68 (£42) each, soared to $92 (£56) amid investor fever.
Mr Ma, who attended the New York Stock Exchange launch, predicted the number of online orders in China would rocket within a decade from the current 27 million packages a day to more than 200 million a day.
Peter Garnry, head of equity strategy at Saxo Bank, said: “Online shopping in China is still a very small proportion of total consumption so the growth potential is enormous.
“It is the backbone of the transition in China to being a consumer economy.”
Mr Ma’s inspiration was the main character in Hollywood film Forrest Gump.
He explained: “Forrest Gump is not a smart guy, but he is focused. He’s not talented, but he is very, very hard-working.”
The share sale was also lucrative for internet search engine Yahoo, which owns 22% of the business, and workers who were handed £2.8billion worth of stock.
Mr Ma, who set up Alibaba with £37,000 borrowed from 18 people, came up with the name in a coffee shop in San Francisco.
He asked a waitress what she knew about Ali Baba and she replied: “Open Sesame.”
The name reflects how the business opens up opportunities for small businesses to sell their goods.
Mr Ma paid nearly £120millon for a half stake in Chinese football club Guangzhou Evergrande FC this year, calling it “investing in happiness”.
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