Alibaba's hotly-anticipated initial public offering did not disappoint, setting a new world record by raising $25 billion.

The Chinese e-commerce giant on Friday initially raised $21.8 billion. However, it topped the $22.1 billion raised in 2010 by the previous record holder, Agricultural Bank of China, after Alibaba and some shareholders on Monday exercised an option to sell an additional 48 million shares, according to a source cited by Reuters.

The $25 billion valuation is $10 billion higher than the value anticipated in May, when Alibaba initially filed its IPO prospectus with the U.S. Securities and Exchange Commission.

Alibaba is the world's largest e-commerce company, handling $296 billion worth of transactions in the 12 months to 30 June. Of that total, $71 billion worth was carried out using mobile devices.

Its IPO yielded a large windfall for Yahoo, which sold 140 million shares worth nearly $10 billion. Yahoo in July said it would return at least half the proceeds to shareholders. Meanwhile, Japanese operator Softbank has retained its 34.1% Alibaba stake, which post-IPO is now worth around $70 billion.

In addition, according to the Hurun Report, the Alibaba IPO has propelled founder Jack Ma to the top of China's rich list with a fortune totalling approximately $25 billion.