The New York Stock Exchange and Nasdaq Stock Market both still have a shot at the most coveted U.S. initial public offering in years.
When Alibaba Group Holding Ltd. outlined its plans for an IPO in a filing today, it left unsaid whether the shares will list on the NYSE or Nasdaq.
For both exchanges, there's more at stake than the right to brag about hosting what could be the largest U.S. IPO. A victory for IntercontinentalExchange Group (ICE:US) Inc.'s NYSE would underscore how it's undermined Nasdaq OMX Group (NDAQ:US) Inc.'s former dominance over technology company listings. Nasdaq can show it's moved past the technical errors that plagued Facebook Inc.'s debut on that market in 2012 and led Twitter Inc. to chose NYSE for its listing last year.
Money is at stake, too, as NYSE and Nasdaq collect fees from their listed companies. A high-profile win such as Hangzhou, China-based Alibaba can help lure other companies to a venue. NYSE has ground to make up among Chinese technology and Internet firms: Nasdaq lists 47 companies with those credentials while 22 are on NYSE, according to data from each exchange.
Chipping Away
While Nasdaq, which is the listing venue for Google Inc., Apple Inc., and Alibaba shareholder Yahoo! Inc. (YHOO:US), was once the obvious choice for an Internet upstart, NYSE has been chipping away at its lead. Out of the 10 technology and Internet IPOs that priced during the first quarter in the U.S., seven chose to list on the NYSE, according to data compiled by Bloomberg.
The perception of Nasdaq as a natural home for technology listings was undermined by the Facebook IPO, in which a computer error caused the exchange operator to mishandle investors' orders. Nasdaq paid $10 million to settle regulatory charges that the error violated securities laws. In the aftermath, Twitter picked NYSE over Nasdaq when it debuted last year.
From 2001 through 2011, Nasdaq won 122 technology and Internet IPOs and NYSE scored 42, data compiled by Bloomberg show. LinkedIn Corp., Pandora Media Inc. and Yelp Inc. have all selected the NYSE for IPOs since. From the start of 2012 through March 31 of this year, NYSE won 45 technology listings that raised $8.8 billion, while Nasdaq secured 35 that raised $20.7 billion, an amount padded by Facebook's $16 billion debut.
Alibaba might raise as much as $20 billion, topping a $19.65 billion offering by Visa Inc. in 2008, data compiled by Bloomberg show. Today's filing with the Securities and Exchange Commission said the company would raise $1 billion. The amount will change and is a placeholder used to calculate registration fees. Alibaba didn't specify the number or price of shares it will offer.
Will Briganti, Nasdaq spokesman, said the exchange doesn't comment on companies at this stage of the listing process. Sara Rich, NYSE spokeswoman, also declined to comment.
To contact the reporter on this story: Sam Mamudi in New York at smamudi@bloomberg.net
To contact the editors responsible for this story: Nick Baker at nbaker7@bloomberg.net Jeremy Herron, Joshua Fellman
Source : http://www.businessweek.com/news/2014-05-06/alibaba-keeps-nyse-nasdaq-waiting-for-listing-in-tech-contest
