Alibaba Group, has reportedly ended talks with regulators and the Hong Kong Stock Exchange regarding its anticipated initial public offering (IPO). Alibaba has now engaged U.S.-based law firms to prepare for an IPO in New York instead.
Alibaba’s decision for a U.S. listing hinged on Hong Kong’s reluctance to accept the company’s proposal of a dual-class share structure which would enable Alibaba’s “partners” to retain control over the nomination of a majority of board members – a popular structure adopted by U.S. technology companies including Facebook and Google. According to market analysts, the company is estimated to be valued at up to US$120 billion.
Source: Business Strategies Group Hong Kong – www.bsgasia.com