Both sides now - pros and cons of dual shares
BOTH the Hong Kong and Singapore stock exchanges currently have a "one share, one vote" system. To control a company, one needs to own a significant number of shares.
Alibaba, China's leading Internet group with a potential market value of US$60 billion, wanted to bend this rule in Hong Kong when it explored an IPO (initial public offering). It demanded that its management team - mainly founders and senior executives - have an ongoing right to nominate a majority of board members, even though they only have 13 per cent ownership of the company.
Talks between the company and the Hong Kong Stock Exchange collapsed in September 2013; but now, it appears that both sides are backing down. The exchange is said to be considering a reform of its listing rules, while Alibaba is said to be willing to renegotiate a listing in Hong Kong.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Honda to spend US$11 billion on EV strategy in Canada
GlaxoSmithKline sues Pfizer and BioNTech over Covid-19 vaccine technology
Mapletree Industrial Trust Q4 DPU rises 0.9% to S$0.0336
Nasdaq’s profit falls as shaky economy keeps IPO revival elusive
iFast Q1 net profit surges on ePension unit performance
Suntec Reit Q1 DPU down 13% to S$0.01511 in absence of capital distribution