Report: Alibaba to skip US market in mega IPO
According to the Financial Times' sources, a US listing is almost certainly off the table for the Chinese e-commerce heavyweight.
In a setback for the struggling U.S. initial public offering market, Chinese e-commerce heavyweight Alibaba is reportedly planning to snub New York and London exchanges in what will likely be the largest IPO this year.
The decision to skip the U.S. markets in this highly-anticipated IPO spotlights reluctance by Chinese companies to deal with American regulators and lingering tensions between the two countries.
According to the Financial Times, bankers from three different institutions in the U.S. and Asia that were in talks with Alibaba about its IPO plans said a U.S. listing is almost certainly off the table.
"Nothing is absolutely definitive and they are running a very secretive process, but everything they are planning for is Hong Kong related," a banking source told the FT.
Alibaba didn't immediately respond to a request for comment.
Previously, bankers had anticipated Alibaba would pursue a dual listing in both the U.S. and Hong Kong.
The Alibaba IPO, expected as early as the fourth quarter of this year, could value the e-commerce company at $60 billion to $70 billion, which is slightly larger than Facebook's (FB) current valuation of $58 billion.
Alibaba decided against a U.S. listing because of the tougher regulatory and accounting standards it would need to grapple with as well as to make a "cultural point," the FT reported.
Additionally, the Chinese company didn't wish to disclose too much information to U.S. regulators, the paper said.
The Alibaba listing will have a large impact on U.S. Internet giant Yahoo (YHOO), which owns a roughly 24% stake in the Chinese company.
After 54 Chinese-based companies raised more than $6 billion in the U.S. markets in 2011 and 2012, none have debuted in the U.S. this year, and many have jumped ship by going private, the FT said.
More from Fox Business
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.
The idea of US crude being a shelter from turmoil abroad may not be as far fetched as it seems.
VIDEO ON MSN MONEY
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.