US stock exchange to land coveted Alibaba IPO

The listing is likely to set off a scramble between the NYSE and Nasdaq over the right to bring China's most valuable e-commerce company public.

By MSN Money Partner Sep 25, 2013 2:37PM

An employee walks past the Alibaba logo at its headquarters in Hangzhou, China, on June 20, 2012 (© Carlos Barria/Reuters)Fox BusinessBy Matt Egan

 

In a big win for U.S. stock exchanges, Chinese e-commerce juggernaut Alibaba Group reportedly plans to list its massive initial public offering in the U.S., following a disagreement with Hong Kong over how much power its founders would retain.

 

The coveted Alibaba listing, which will trump the size of Twitter's highly-anticipated IPO, is likely to set off a scramble between the New York Stock Exchange and Nasdaq Stock Market ($COMPX) over the right to bring China's most valuable e-commerce company public.

 

According to The Wall Street Journal, a U.S.-listed Alibaba IPO could come as soon as the first quarter of 2014 and the company has already hired a U.S. law firm to work on the debut.


Alibaba declined to comment on the report.

 

Analysts have said Alibaba could be valued at about $70 billion in an IPO, or roughly half the size of U.S. e-commerce leader Amazon.com (AMZN), which has a stock-market valuation of $143.6 billion.

 

Previous reports indicated Alibaba would snub both New York and London amid reluctance by Chinese companies to deal with tougher U.S. regulators.

 

However, Alibaba abandoned plans to list in Hong Kong due to reluctance from the city's exchange to allow the company's senior executives, including Alibaba founder Jack Ma, to nominate the majority of the board, the Journal reported.

 

Such a move would go against the exchange's principle of treating all shareholders equally and has been criticized as giving too much power to Ma and other senior execs.

 

Alibaba would employ that kind of a partnership structure for nominating board members if it lists in the  U.S., the Journal said.

 

It's not clear yet whether Alibaba would choose to list on Nasdaq OMX Group's (NDAQ) Nasdaq Stock Market or the Big Board, which is owned by NYSE Euronext (NYX).

 

Nasdaq's reputation has been dinged by a number of high-profile mishaps, including the botched May 2012 debut of Facebook (FB) and a three-hour trading freeze for all Nasdaq-listed stocks in August.

 

A recent report said Twitter, the most highly-anticipated debut since Facebook, has decided to list on NYSE. However, sources told FOX Business a final decision about where to list hasn't been made and neither exchange has been contacted by Twitter.

 

More from Fox Business

1Comment
Sep 25, 2013 3:19PM
avatar
so much for over-regulation killing the U.S. exchanges
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

118
118 rated 1
270
270 rated 2
472
472 rated 3
714
714 rated 4
624
624 rated 5
608
608 rated 6
623
623 rated 7
445
445 rated 8
319
319 rated 9
125
125 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BMYBRISTOL-MYERS SQUIBB CO.10
CELGCELGENE CORP10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.