This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Alibaba All Set for Takeoff, Picks NYSE, Ticker BABA for IPO

Stocks in this article: YHOOAMZN

NEW YORK (TheStreet) -- As Chinese e-commerce giant Alibaba moves forward with an initial public offering, the company said on Thursday it will list its shares on the New York Stock Exchange (NYX) under ticker "BABA." Alibaba disclosed the exchange selection and ticker in an amended S-1 filing with the Securities and Exchange Commission.

Jim Cramer: Alibaba Is An Unstoppable Freight Train

Alibaba's decision to list on the NYSE is a huge coup for the exchange and could generate significant fee-related revenue. While the size, price and timing of Alibaba's IPO haven't yet been disclosed, the offering is widely expected to be the biggest in U.S. history. The firm could also receive a valuation in excess of U.S. e-commerce pioneer Amazon (AMZN).

Traditionally, tech companies including Amazon have listed their shares on Nasdaq (NDAQ). However, in recent years many prominent tech-related IPOs have chosen the NYSE. While Facebook listed its shares on Nasdaq, Twitter listed its shares on the NYSE.

Earlier in June, Alibaba disclosed new information about its partnership and board of directors. The firm disclosed the names 27 partners who are able to nominate a majority of director appointments to the company's board. Alibaba also disclosed its board of directors, which will be comprised of a majority of outside directors.

One little-reported element of Alibaba's partnership structure is its gender diversity. A third of Alibaba's partners are female, TheStreet first reported, perhaps, showing inclusiveness that would compare favorably to the company's Silicon Valley competitors.

Alibaba's partnership was also the impetus for the company's decision to move forward with a share offering in the U.S. and ultimately with the NYSE.

Partnership Drives U.S. Listing

Alibaba decided to list its shares in the U.S. because of a spat the company had with Hong Kong regulators, who would not allow the company to list its shares with a special partnership structure. Both the NYSE and Nasdaq approved Alibaba's partnership structure, paving the way for the company's U.S.-based offering

Many U.S. financial pundits took Alibaba's decision to list in New York as reason to believe the company would list its shares with a dual class stock structure, giving insiders different voting rights than ordinary shareholders.

While Chinese companies recently making an IPO, such as JD.com (JD), Weibo (WB) and Cheetah Mobile  (CMCM) have listed in the U.S. with dual class voting standards, Alibaba isn't. Instead, the company's partnership seeks to nominate a majority of directors to its board of directors.

"Unlike dual-class ownership structures that employ a high-vote class of shares to concentrate control in a few founders, our approach is designed to embody the vision of a large group of management partners. This structure is our solution for preserving the culture shaped by our founders while at the same time accounting for the fact that founders will inevitably retire from the company," Alibaba states in its F-1 filing with the SEC.

Alibaba Underwriters Go From Alpha to Beta

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,810.06 +91.06 0.51%
S&P 500 2,063.50 +10.75 0.52%
NASDAQ 4,712.97 +11.1030 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs