Financial News

  • 28 June 2014, 4:06

Alibaba Goes For NYSE And Not Rival Nasdaq

China's giant online retailer Alibaba is to list its shares on the New York Stock Exchange and not the rival tech-heavy Nasdaq.

In a regulatory filing it said American depositary shares will use the ticker symbol BABA on the NYSE.

A NYSE spokesman said: "We participated in a comprehensive and deliberate exchange selection process, and we are pleased to welcome Alibaba Group to the New York Stock Exchange."

In May Alibaba filed for an initial public offering (IPO).

The company, which handles more than three-quarters of online retail transactions in the world's most populous nation, now expected to go public in late summer or early autumn.

Alibaba has not revealed how many shares will be offered or what its expected price is.

However analysts believe it could top Facebook's $16bn (9.4bn) float on the Nasdaq to become the biggest tech offering ever.

Facebook's highly anticipated float turned damp after glitches hit early trading attempts on the Nasdaq.

The problems were seen as a reason why Twitter subsequently decided to list on the NYSE and not the Nasdaq.

Alibaba's IPO will be the largest Chinese firm to list on a US exchange and brings it under legal controls of the Foreign Corrupt Practices Act (FCPA).

The Securities & Exchange Commission and Department of Justice enforce the strict regulations of the FCPA, which was originally created to stop American businesses from bribing foreign officials after the Watergate scandal.

However most of the biggest FCPA fines in recent years have been against US offshoots of foreign companies.

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