Feeds

Alibaba stands firm against Hong Kong exchange over IPO

Firm battles to keep management in control after it goes public

Providing a secure and efficient Helpdesk

Chinese tech biz Alibaba has revealed details of its internal partnership structure, which would allow a group of founders and senior employees to keep control over the board after the company goes public.

Founder Jack Ma spilled the details in an email to employees, according to Reuters, adding to pressure on Hong Kong to accept the structure if they want to see what could be the biggest tech IPO since Facebook's $16bn listing last year.

The Hong Kong market is not generally fond of dual-stock structures, which ensure that certain people have control of a company by giving their shares more voting power than outside investors.

Ma said in the email that 28 senior employees would have the right to nominate the majority of the board and that this structure was intended to "safeguard the culture of innovation" and protect the firm from the "temptation to seek short-term gains". He denied that the partnership was aimed at exerting "greater control over the company".

Alibaba has been lobbying the Hong Kong exchange and local regulators to allow it to keep the partnership structure despite the fact that the market has previously resisted the efforts of companies to treat any shareholders differently.

If the parties can't reach an agreement, Ma may decide to take the IPO to New York, where tech firms have been successful in implementing dual-class voting shares to retain control after going public.

Ma said he was "not concerned about where to go public, but we do care that wherever we end up going public must support this type of open, innovative, responsible culture that values long-term development." ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.