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Thursday, Oct 10
Alibaba to shun Hong Kong in IPO
- Alibaba Group has decided not to list in Hong Kong, CEO Jonathan Lu has told Reuters, as authorities "need time to study" a structure that would allow the Internet giant's "partners" - a group of founders and senior employees - to maintain control of the board's composition. In other words, the authorities won't allow it.
- However, Alibaba hasn't decided on which exchange it will list - it has been speculated that the company will IPO in the U.S.
- Any flotation could raise an estimated HK$100B ($12.9B) and value Alibaba at up to $120B. That would be a boon to Yahoo (YHOO) and Softbank (SFTBF.PK), which own 24% and 35% respectively.