Alibaba IPO structure meant to boost control

Alibaba’s proposed structure for a Hong Kong IPO is meant to exert greater control over the company, South China Morning Post reported, citing an email between company founder Jack Ma and staff that the paper obtained. Hong Kong Exchanges and the Clearing and the Securities and Futures Commission fret that the partnership effectively creates a dual structure conferring more rights on one group of shareholders than another – something the exchange does not allow. The e-mail said the partnership scheme had begun in 2010 and had elected 28 partners over a three-round selection process following strict eligibility criteria.