Technology giant Alibaba Group Holding Ltd. is working on a plan to list on a stock exchange in its home market, China, the Wall Street Journal reports, citing people familiar with the matter.
Currently, China doesn’t allow overseas companies to sell shares directly to local investors. Alibaba is incorporated in the Cayman Islands, although the bulk of its operations are in China.
Chinese markets also don’t allow the listing of firms with dual-share structure like Alibaba, which gives management more control of the company, although they own fewer shares than other stakeholders.
Beijing, however, now wants to lure these private tech firms back to the country to enable domestic investors to trade their shares.
Regulators are said to be studying the possibility of allowing the listing of depositary receipts, which represent a foreign company’s publicly traded securities.
In 2014 Alibaba launched a US$25 billion initial public offering, still the world’s largest, on the New York Stock Exchange, which accepts firms with dual-share structure.
Its shares have risen 86 percent over the past year and have more than doubled since their US debut, the Journal said.
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