Alibaba moving towards American IPO

Alibaba moving towards American IPO

Chinese e-commerce giant Alibaba is considering an American IPO, after negotiations with the Hong Kong stock exchange failed. This might lead to a huge clash of America’s two largest stock exchanges, the NYSE Euronext and the Nasdaq.

Traditionally on the Nasdaq

Traditionally, technology companies used to go for the Nasdaq, but Facebook’s less than smooth IPO seems to have damaged Nasdaq’s reputation. Twitter, for example, is leaning towards the New York Stock Exchange, when it starts trading in the near future. NYSE will do everything within its power to attract a giant like Alibaba, possibly luring it away from under Nasdaq’s nose.

 

Alibaba’s worth is an estimated 120 billion dollars (some 90 billion euro), with a Chinese market share of 80 % when it comes down to e-commerce. Those numbers give Alibaba third place in the hierarchy of world’s largest internet companies, only behind Amazon and Google.

 

Law prohibits Alibaba from joining Hong Kong stock exchange

Alibaba heading towards the United States is a huge blow for the Hong Kong stock exchange. The reason for the failed negotiations lies in the stock structure of the company. Alibaba uses dual-class shares, popular with online companies like Google and Facebook. Hong Kong however does not allow this type of structure.

 

Alibaba has closed a week’s long negotiation with Hong Kong and the regulators by announcing the possible step towards the US. "We have come to the end of dialogue with Hong Kong and we are pivoting to the US to start the listing process”, an inside source confirmed to Reuters. Supposedly, several American law firms have already been contacted in order to follow up on a possible IPO.

Questions or comments? Please feel free to contact the editors


Alibaba invests billions in physical retail

28/08/2017

Over the past two years, Chinese eCommerce giant Alibaba has spent nearly seven billion euro in physical retail. Its Hema Xiansheng chain already has thirteen supermarkets and it acquired luxury department store Intime from the government in January.

Alibaba exceeds expectations

17/08/2017

Chinese Alibaba has trumped analysts’ turnover and profit expectations with its first quarter results. Its profit even doubled compared to the year before.

Aldi will home deliver in the United States

16/08/2017

German discounter Aldi is starting one-hour deliveries for online orders in the United States, using startup Instacart. Amazon’s reaction was swift: it will test lockers in which custumers can collect items two minutes after ordering them.

Yoox-Net-a-Porter thrives thanks to mobile surge

03/08/2017

Online retailer Yoox-Net-a-Porter has managed to beat analysts’ expectations in the past fiscal year, thanks to a surge in mobile sales. For the first time ever, these sales contributed more than half of the retailer’s total turnover.

Lidl constructs new distribution center in Venlo

01/08/2017

Lidl will open a new distribution center in Venlo, which will cater its web shop’s customer base. The distribution center is not a Lidl Netherlands project, but apparently an international project.

Amazon places own pick-up lockers at consumers' homes

31/07/2017

Amazon announced The Hub, a system of pick-up lockers that can be placed everywhere. They come in different sizes and can be placed both inside or outside of buildings.

Back to top