Alibaba Picks New York Stock Exchange for Its Listing
In the battle to be the market home for the Alibaba Group, the winner is the New York Stock Exchange.
The Chinese Internet giant disclosed in an amended prospectus on Thursday that it plans to list on the Big Board, under the ticker symbol 'BABA.'
The choice marks a big victory for the New York Stock Exchange, which had competed with the Nasdaq stock market for what is expected to be one of the biggest initial public offerings in years. Alibaba will be the New York Stock Exchange's biggest-ever Internet I.P.O., with Facebook choosing Nasdaq in its market debut two years ago.
Still, several people briefed on the company's deliberations have said over recent months that the New York Stock Exchange held an edge over its competitor. One factor that may have weighed on some executives' minds was Facebook's botched I.P.O., a morass of trading delays and investor anger that tainted Nasdaq's reputation.
That Alibaba is listing in the United States at all is because both American exchanges are comfortable with its unique corporate governance structure. The e-commerce company features a 'partnership,' a 27-person group of insiders who will nominate a majority of board members.
The structure isn't quite the same as a dual-class stock system in which certain shareholders hold shares with significantly more voting power than others. But it still ran afoul of the one-share-one-vote principle that governs the stock exchange in Hong Kong, Alibaba's home market.
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