Alibaba Keeps HK Listing Options Open

Tech investors who had hoped that Alibaba’s share sale might follow hot on the heels of Twitter’s stellar listing will have to wait a good while longer. China’s leading internet group has signalled that its initial public offering – expected to value the company at more than $60bn – will be on hold until the dust settles on a spat with Hong Kong’s listing authorities.

Bankers say that Alibaba’s delay suggests it will swallow its pride and attempt to renegotiate a listing in Hong Kong – noting that it has chosen to wait, even though US exchanges have already indicated that have no problems with its unusual corporate governance structure.

“We think it will try again in Hong Kong – that’s where they have always wanted to list,” said one senior banker.

Charles Li, who is head of the Hong Kong stock exchange, has started the ball rolling on a market-wide consultation on alternative share and control structures that is likely to be formally initiated by listing authorities early next year.

Mr Li recently used a blog to list more investor friendly versions of Alibaba’s governance plans. These versions were presented to Alibaba during negotiations over a Hong Kong listing, but the group refused to consider them, according to people familiar with the events.

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