Blackstone shares yesterday jumped 14.8 per cent on the US private equity group's first day of trading in a strong performance that could encourage arch-rival Kohlberg Kravis Roberts (KKR) to follow suit within weeks.

After pricing the landmark offering at $31 a unit on Thursday night, Blackstone saw its share price soar to $35.58 and its market value increase to about $38 billion by noon.

Blackstone's sparkling debut on the New York Stock Exchange shows how investor demand for the most high-profile Wall Street listing in years remained strong in spite of doubts about the company's valuation and a political backlash against the industry.

KKR was closely watching the market reaction yesterday. Having considered a stock market debut for months and held advanced discussions with investment banks that would underwrite a possible listing, KKR could move within weeks towards a filing with US regulators, these people said.

However, no decision had been made and Blackstone's market performance would have to be judged over a longer period, they warned.

Other US private equity groups, including Apollo Management, Carlyle and TPG Capital, have also been considering listings.

Steve Schwarzman, Blackstone's 60-year-old chief executive, owns a 23 per cent stake in the company, worth about $10 billion after the share price jump.

Mr Schwarzman extracted $677 million from the listing while Pete Peterson, the 81-year-old senior chairman, received a pay-out of about $1.88 billion.

Blackstone benefited from high demand for its units in spite of significant doubts about the company's valuation.

In addition to concerns that the global private equity boom could be ending amid rising interest rates, a serious political challenge to the listing emerged last week when Max Baucus and Chuck Grassley, the most powerful members of the senate finance committee, introduced legislation that would significantly raise Blackstone's tax bill in 2012.