According to the Wall Street Journal: "The next big initial public offering on the horizon is looming in the East, as Alibaba Group Holdings cleared a key hurdle to list its shares in the U.S."
The potential listing is coveted by U.S. exchanges even as investor advocates and other observers are highlighting the Chinese company's unique governance structure.
The potential listing is coveted by U.S. exchanges even as investor advocates and other observers are highlighting the Chinese company's unique governance structure.
On Monday, Alibaba said it received written confirmation from the NYSE and the Nasdaq, that it could list its shares on those platforms. The clearance from the U.S. came weeks after discussions with the Hong Kong Stock Exchange ended after the exchange wouldn't allow Alibaba to have a group of partners nominate the majority of directors on its board, according to people familiar with the talks.
That likely would not be an obstacle for a U.S. listing. Securities lawyers said the e-commerce giant could qualify for a foreign-company exemption that would let former and current executives exert such influence over the company's board.
Alibaba hasn't decided where to list its shares and it hasn't appointed any banks as underwriters for its IPO, according to an Alibaba spokesman.
