Chinese internet giant Alibaba is planning a US stock market listing in the third quarter of this year.
Alibaba Group Holding Ltd is expected to list around $15 billion in shares on the New York Stock Exchange, according to Reuters, following difficulties with the Hong Kong securities exchange over its ownership structure.
The company is based in Hangzhou, about 100 miles south west of Shanghai, and controls about 80 per cent of the country's e-commerce market. It is valued at as much as $140 billion and the sale of part of the company is expected to be the biggest listing since Facebook's $16 billion deal.
The Hong Kong exchange has tried to thrash out a deal with Alibaba. But it could take many more months to find a way to alter or navigate listing rules and the technology giant does not want to miss out the current demand for tech firms.
A New York listing is not certain but the most likely route given the barriers to entry on the Hong Kong exchange, sources told Reuters yesterday. Alibaba's executive vice chairman Joe Tsai said it was 'never' going to change its ownership structure to accommodate listing requirements of an individual exchange.
Japan's Softbank Corp owns 37 per cent of the shares, Yahoo Inc owns 24 per cent and founders and senior management own about 13 per cent.
The International Financing Review also reported on Friday that Credit Suisse and Morgan Stanley have begun work on the listing under the project code name 'Project Avatar'. Source said the work was 'preliminary' and that part of the work included establishing the ideal timing for a listing.
It is estimated banks could cash in on fees worth around $260 million, Reuters has previously reported.
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