Seeking Alpha

Alibaba heads for U.S. IPO after HK negotiations stall - report

  • Alibaba reportedly plans to carry out its blockbuster IPO in the U.S. after negotiations with the Hong Kong stock exchange broke down over the e-commerce giant's demand that its "partners" - a group of founders and senior managers - maintain control over the composition of the board.
  • Listing in New York would allow the partners to keep their grip of the company due to the possibility of creating a dual-class structure where one set of shares provides more voting rights than another.
  • Alibaba has hired U.S. law firms to start working on the listing and intends to soon appoint banks.
  • The IPO 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.
Comments (1)
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
    Buying $YHOO one buys into Alibaba and that is why I went long a while ago. Also it is a turn around story. Meyer might be able to get that company going again.
    25 Sep 2013, 07:40 AM Reply Like
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