Just a week before the biggest IPO in the U.S. stock market history, Alibaba ruled out listing on NASDAQ primarily because of a suspicion in NASDAQ’s ability to handle the IPO. Irrespective of the fact that listing on NASDAQ could have helped Alibaba’s inclusion in NASDAQ 100 index making it mandatory for funds tracking the index to buy it.
NASDAQ tried to persuade Alibaba and ensured that the problem was resolved completely but Alibaba went on to choose NYSE anyways. A spokesman for NASDAQ said,
“It was a close race and we wish Alibaba well.”
Earlier, NASDAQ gave a presentation to Alibaba illustrating the measures it has taken to avoid a technical glitch as in case of Facebook Inc (NASDAQ:FB) in 2012.
Earlier, NASDAQ’s system fell apart during the IPO of Facebook Inc (NASDAQ:FB) and it took up to 30 minutes in fixing the issue. The technical glitch resulted into mass trade confusion and left investors baffled. The CEO, Robert Greifeld, said, “This was not our finest hour,” although he later cited that that deal was “very successful” as it generated nearly $16 billion for the company. The U.S. Securities and Exchange Commission put up a fine of $10 million against NASDAQ. It seems like the Facebook Inc (NASDAQ:FB)’s IPO nightmare is not likely to settle down easily for NASDAQ.
Yahoo! Inc. (NASDAQ:YHOO) is said to benefit most from Alibaba’s first public offering considering the fact that the tech giant would make anywhere near to $8.8 billion or more from the public offering. Investor sentiments are high and Yahoo! Inc. (NASDAQ:YHOO) closed at $42.88 last week with continuous upward rally for the past several days. This IPO could actually turn the tables for Yahoo! Inc. (NASDAQ:YHOO) and help it revive its stand against other tech giants including Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOGL).
This article has been written by Prakash Pandey and edited by Serkan Unal.