Alibaba Group Holding Ltd., China’s biggest e-commerce company, plans to hold its initial public offering in the U.S. after failing to agree with Hong Kong’s stock exchange over a listing in the city, according to two people familiar with the situation. The deal, which analysts say could value the company at $70 billion or more, would be the biggest in the technology sector since Facebook IPO last year and would test global investor appetite for China’s fast-growing consumer market.
This is a challenge and opportunity for the Alibaba Group, e-Commerce giant’s IPO could spark contest between Nasdaq and NYSE. The loss of the Alibaba IPO would be a blow to Hong Kong’s stock exchange, which has struggled in the last couple of years to regain its 2011 status of being the world’s top venue for new listings. Alibaba has given up on listing in Hong Kong and is moving toward a New York IPO.