Seeking Alpha

FT: Alibaba set to choose U.S. over Hong Kong for IPO

  • Alibaba is "95% certain" to carry out its much anticipated IPO in New York rather than in Hong Kong, the FT writes, adding to previous reports that the Chinese e-commerce behemoth will float in the U.S.
  • Listing in New York would allow Alibaba to create a dual-class structure of stocks that would enable its founders and senior managers to retain their tight grip on the company. Hong Kong doesn't provide such an option, although it's mulling a change in rules.
  • Either way, the IPO is set to be one of the largest on record and should provide a large bonanza to Alibaba investors Yahoo (YHOO) and Softbank (SFTBF).
Comments (5)
  • horseman
    , contributor
    Comments (202) | Send Message
     
    OK, that said, what should this mean for yahoo?
    13 Mar 2014, 04:24 AM Reply Like
  • SA User 74XXXXX
    , contributor
    Comments (667) | Send Message
     
    The listing of Alibaba will inflate the already huge trading volumes of China ADRs. Some less known ADRs will become less and less traded as the capital flows to better trading options.

     

    This kind of death spiral will cause some ADRs go on the path of delisting. ADR investors should always pay attention to such risks, brave man or not.
    13 Mar 2014, 04:34 AM Reply Like
  • horseman
    , contributor
    Comments (202) | Send Message
     
    By extension of informative fact or erudite prescience would appreciate elaboration of "some ADRs" and "some less known" specifics for greater acceptable validation to the investing community of SA.
    13 Mar 2014, 12:05 PM Reply Like
  • Michael Nau
    , contributor
    Comments (972) | Send Message
     
    They better hurry, the Chinese credit system won't hold out much longer....
    13 Mar 2014, 06:59 AM Reply Like
  • 22643611
    , contributor
    Comments (2101) | Send Message
     
    SA, you posted a similar headline a couple weeks ago and it turned out to
    be denied by Alibaba.
    Get back to us when you have an actual date.
    13 Mar 2014, 09:55 AM Reply Like
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