China's Alibaba.com sold a 17% stake to public investors for $1.5 billion, people familiar with the matter said.
Investors sought more than 180 times the number of shares available in the initial public offering in Hong Kong's stock market, the people said. The price values Hangzhou-based Alibaba at about $8.8 billion.
The IPO, the biggest by a Chinese Internet company, underscores the potential for growth in China, which might overtake the U.S. next year in the number of Internet users. The offering also might encourage other Chinese Web businesses to sell stock in Hong Kong, where the main share index is up 58% this year.
Alibaba is scheduled to start trading in Hong Kong on Nov. 6.
Yahoo Inc. owns about 40% of Alibaba's parent company. Yahoo shares surged 24% this month through Friday on optimism about gains from the IPO. On Monday, its stock slumped $1.84 to $31.79.
Alibaba's offering is the second-largest by any Web company. Google Inc.'s $1.9-billion share sale in 2004 was the biggest.