Alibaba Among Most Valuable Companies in U.S. After Surge

Alibaba Group Holding Ltd. (BABA), the e-commerce company whose rise has mirrored China’s economic emergence, became one of the most valuable companies traded in the U.S. after its shares surged in their New York debut.

The shares rose 38 percent to $93.89 apiece yesterday in New York, valuing Alibaba at $231.4 billion. That makes it larger than U.S. rivals Amazon.com Inc. and EBay Inc. combined, as well as Facebook Inc., JPMorgan Chase & Co. and all but 10 companies in the Standard & Poor’s 500 Index.

Alibaba raised $21.8 billion in its initial public offering, more than any company in the U.S.

To break the record, previously held by Visa Inc.’s 2008 IPO, Alibaba lured large investors to the stock: Nearly half the shares were placed with just 25 funds, people with knowledge of the matter said. It helped that the shares were offered at a compelling discount to other Chinese Internet companies -- a gap that has disappeared after the gains.

“The IPO discount was certainly erased,” said Peter Tuz, who helps manage more than $450 million as president of Chase Investment Counsel Corp. in Charlottesville, Virginia.

“Right now people believe it has an incredible future, and the stock is priced accordingly, but actual results are going to start to matter.”