Sources told Reuters that Alibaba Group Holding Ltd wanted to retain board control after it goes public. Sources said the company founders and members of its senior management team were looking at a shareholding structure that would enable them to keep board control. This would allow them to make decisions for Alibaba's continued future growth.
Alibaba is expected to hold an initial public offering (IPO) in Hong Kong. The IPO, which would raise about USD 15 billion for the Chinese firm, would probably happen by the of this year.
Alibaba's plan to control the board, however, would not be welcome by authorities at the Hong Kong Stock Exchange. The latter usually supports listings where shareholders have an equal say in company decisions. According to sources, Alibaba was trying to compromise by suggesting alterations to its initial shareholding structure. In the past, the Hong Kong Exchange had allowed firms to do so for as long as there were special clauses to the articles of association.
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