China’s largest e-commerce company, Alibaba Group, has put its initial public offering (IPO) plans on hold to allow Hong Kong’s stock exchange and its regulators to rethink over its proposal of a dual-class share structure listing. The listing structure would allow its 28 partners to nominate a majority of board members to retain control over the nomination of a majority of board members.
The company was recently turned down by the Hong Kong Stock Exchange which follows a “one share, one vote” policy. Alibaba’s management stressed the company considers Hong Kong its top priority regarding a listing venue.
Source: Business Strategies Group Hong Kong – www.bsgasia.com