Alibaba'S Listing In The US

A statement issued on Sunday, < p > a href= "http://www.91se91.com/news/index_s.asp" > Alibaba < /a >, announced that it would go to the United States for IPO (initial public offering).

This is stimulated by the decision of competitors to go to the United States, and on the other hand, the discussions with the Hongkong market have reached a deadlock.

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< p > < strong > Alibaba gave up Hongkong and decided to list in the US < /strong > /p >

< p > the following is the full text of the article: < /p >

After a year's waiting, Alibaba IPO's trader finally lost patience with Hongkong P.

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"P," the source said, as the head of Alibaba IPO, Cai Chongxin did not give up hope for Hongkong until the past few weeks.

The shareholding structure of Alibaba allows senior management team to affect the appointment of board members, which can not be approved by the regulatory authorities in Hongkong.

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< p > according to the sources, the reason why Alibaba finally gave up Hongkong was that Alibaba originally hoped to modify the Listing Rules in Hongkong. However, in the process of revising this rule, the process of consulting public opinion was very slow.

On the other hand, Alibaba's competitors are accelerating the pace of us listing, so Alibaba has no better choice.

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Last Sunday, after nearly 1 years of negotiations with Hongkong regulators and stock exchange officials, Alibaba announced that it would be listed in the United States, and that the size of IPO could exceed the total financing of Facebook in 2012, that is, $16 billion.

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"P > Hongkong consulting firm EY < a href=" http://www.91se91.com/news/index_cj.asp "> Finance < /a > service management partner Keith Pegsen (Keith Pogson) said:" Alibaba realized that in the time they want to achieve the listing time, this is not a battle they can win.

So they decided to look for a market that could support such a shareholding structure.

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< p > no matter from prestige, related income and future trading volume, Alibaba's choice of us listing is a blow to Hongkong's financial industry.

At present, most of the listed companies in Hongkong are the financial and real estate companies in Greater China. Therefore, the Hongkong stock exchange is promoting diversification of listed companies to strengthen Hongkong's position as a global financial centre.

However, the departure of a large high growth technology company is undoubtedly not conducive to Hongkong's goal.

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The failure of Hongkong P is also the success of the US financial industry.

With a commission ratio of 1.75%, Alibaba's listing fees can only bring about $300 million to relevant investment banks.

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< p > in Hongkong, Alibaba and its financial advisers need to face the "one vote, one vote" equity system aimed at protecting the interests of small investors.

Some family businesses and rich people have great influence on the Hongkong market.

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"Hongkong's loss of Alibaba is regrettable, but the failure is justified," said Mr P, a EY.

We should congratulate the regulatory authorities in Hongkong for adhering to the value standard and showing the outside world that Hongkong is a strong market, and these issues are very important and people are concerned about the protection of investors. "

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< p > sources said the Alibaba had hoped that Hongkong's adjustment to the shareholding structure of listed companies would enable the company to go public in Hongkong.

However, the process of public consultation was slow, and the Hongkong securities and Futures Commission (SFC) returned the preliminary draft of the Hongkong stock exchange to adjust the relevant provisions.

According to sources, SFC insisted that the adjustment of listing rules should not be affected by the listing of Alibaba.

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< p > Alibaba said it would not comment further on Sunday's statement.

In this statement, Alibaba said that in the US, IPO will "make us a more global company and enhance the pparency of our company".

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< p > < strong > the Chinese company's listing in the US is less than /strong > /p >

< p > Alibaba originally planned to go public at the end of 2013, but because SFC opposed Alibaba's unique shareholding structure, the plan failed.

Under the current shareholding structure, the partners of Alibaba can nominate and control the board of directors, which is contrary to the "one vote, one vote" rule adopted by Hongkong.

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< p > while waiting for the Hongkong regulatory authorities to make a decision in Alibaba, Cai Chongxin and Ma Yun also found that not only the stock prices of technology giants such as Facebook and Google rose sharply in the US, but also some small technology companies in China, such as Jingdong and Sina micro-blog, are speeding up the pace of going to the US.

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< p > in the past year, the NASDAQ index with technology stocks increased by 34%.

The listing of some technology companies also worries investors that the NASDAQ index is at a bubble level.

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< p > news sources said that due to the stalemate brought about by Hongkong's regulatory authorities, Alibaba was worried that the enthusiasm of the market for Alibaba IPO might gradually decline.

Alibaba has not yet announced which exchange will be listed in the United States, nor has it confirmed the timetable for listing.

According to sources, Alibaba will be listed on NASDAQ or NYSE at the end of July.

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The listing of < p > in < a href= "http://www.91se91.com/news/index_p.asp" > New York < /a > means that Alibaba will become the target of US regulatory authorities and class action lawyers.

But it also means that Alibaba will attract more investors to understand the technology industry and capital, and contribute to the promotion of Alibaba's valuation.

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< p > Alibaba's largest shareholder includes YAHOO holding 24% and Softbank holding 37%.

According to Reuters's statistics of 12 analysts, the average value of Alibaba is estimated to be $141 billion.

Based on this valuation and the sale of half of YAHOO's shares under the previous agreement, Alibaba IPO will have more than $17 billion in financing.

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< p > < strong > internal disputes in Hongkong < /strong > /p >

The position of < p > SFC against the partner system of Alibaba gradually surfaced last year.

Sources said that Alibaba representatives met SFC many times last year, but failed to reach a substantive agreement.

One way to break this deadlock is to modify the rules of shareholders and strengthen the flexibility of Listed Companies in Hongkong stock exchange.

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< p > if the Hongkong stock exchange can work out the shareholders' rules approved by SFC, then the Alibaba's IPO window in Hongkong will be opened.

This process of public consultation will take several months, so if possible, Alibaba will still be available in Hongkong by the end of 2014.

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< p > however, the source said that the dispute between the Hongkong stock exchange and SFC has put the Alibaba in a difficult position.

Earlier this year, the Hongkong stock exchange made a draft and submitted it to SFC, hoping to start the process.

Last month, however, SFC returned the draft to the Hongkong stock exchange and asked for a series of changes.

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< p > the source said: "SFC does not want the Hongkong stock exchange to rush out of the consultation document, so it returned the draft and said to the exchange:" you are not a decision maker. "

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< p > SFC declined to comment.

The Hongkong Stock Exchange said that the discussion papers on stock grading and other issues will not be released in the current quarter.

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< p > < strong > declaration issued the whole story < /strong > < /p >.

< p > a source said that before formally deciding to list in the US, Alibaba needed to contact the competent authorities in China to let the competent authorities know Alibaba's decision.

The Chinese government prefers Alibaba to Hongkong instead of overseas.

Sunday's statement is the first official confirmation of Alibaba's IPO and the location of IPO.

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< p > the source said Alibaba did not plan to issue such a statement, but the current market rumors and media reports have caused a lot of interference.

Alibaba management decided to calm the rumors by this statement.

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< p > the source said that before issuing the statement, Yao Yunren, senior vice president and chief financial officer of Alibaba, had called some investment banks to inform these investment banks that they will play a certain role in Alibaba's IPO.

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< p > according to the sources, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan chase and Morgan Stanley are working with Alibaba on the "a href=" http://www.91se91.com/news/index_s.asp "IPO < /a", and the first formal meeting between Alibaba and bankers, lawyers and accountants for the IPO process will be held in March 25th.

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