More and more foreign companies that want to go public are going to New York. Alibaba is preparing to list on The New York Stock Exchange in what could become the biggest tech sector IPO in U.S. history. Many foreign firms are attracted
by the flexible U.S. stock exchange rules, but the looser regulations have some investors concerned. CCTV’s Shraysi Tandon reports.
Alibaba to be the biggest tech sector IPO in US HistoryMore and more foreign companies that want to go public are going to New York. Alibaba is preparing to list on The New York Stock Exchange in what could become the biggest tech sector IPO in U.S. history. Many foreign firms are attracted
E-commerce giant Alibaba is the latest Chinese company that decided to go public in New York. It joins a slew of Chinese firms like Weibo, JD.com and Cheetah Mobile that have all listed on a U.S. stock exchange.
Based on the paperwork filed to U.S. regulators, a total of around 15 foreign companies have filed applications this year to list on the New York Stock Exchange or the Nasdaq. That makes 2014 the busiest year for foreign IPOs in almost 20 years.
Former Apple CEO John Sculley says prestige and looser regulations make the U.S. an appealing destination for foreign companies.
U.S. stock exchanges allow company executives, and insiders, to own less than half the company stock and still exercise control over the firm. Many foreign firms are also exempt from some disclosure requirements that are compulsory for U.S. companies.
Looser U.S. regulations have some investors concerned about the Alibaba IPO, though-especially when it comes to the way the company is run.
Despite these concerns, Wall Street is eager to host one of the world’s fastest growing companies-in the world’s fastest growing economy. For many, Alibaba’s September 19th IPO day, can’t come soon enough.
To explore in more detail the business of IPOs, Josef Schuster joins the show. He is the founder of IPOX Schuster.