Alibaba Case Of B2ba
Alibaba’s IPO Story:
Why Alibaba was not allowed to be listed in Hong Kong Exchange (HKE)?
Alibaba had been a thing of discussions for a …show more content…
listing, the e-tailing giant’s leadership led by Jack Ma got to keep control over the company’s board, a privilege which the authorities of Hong Kong Exchange (HSE) were keen to deny. Alibaba's choice resulted in a blow to Hong Kong's financial industry, in terms of lost prestige, trading volumes and fees. The absence of a large, dynamic tech company will spike the Hong Kong exchange (HSE) as it tries to broaden the horizons of its publicly traded stocks away from Chinese financial and property organisations, augmenting its status as a global financial centre. The deal had the potential to bring in about $300 million as advisory fees alone to the banks involved, based on an estimated 1.75 percent commission.
The incident pushed away a Chinese technology juggernaut and its financial advisors against securities officials guarding the rigid shareholding rules and regulations meant for protecting retail investor’s interest with a one share-one vote guarantee, in a city where family-owned businesses and tycoons hold heavy influence.
The Alibaba IPO at NYSE