Alibaba Group Holding Ltd (BABA)’s Listing Delay Payoff

Alibaba Group Holding Ltd (NYSE:BABA)‘s IPO which is the world largest such equity raising venture did not open with the markets today, although the listing will happen today. CNBC interviewed Tomas Farley who is NYSE Group President and confronted him with the question. 1

When faced with the question that is on every investor’s mind right now, Farley gave the reasoning that makes NYSE the most sought after exchange in the world.

“Part of what I like about our model is that we have humans that can work with the technology and they can open the market when there is a balance and when that entrepreneur can get a full and fair price for their stock and the stock can trade as smoothly as possible. It’s going to take a while this morning because it is a large IPO […],” said Farley.

Alibaba Group Holding Ltd (NYSE:BABA) had two options when it chose New York as the listing city for the company’s first ever IPO. NYSE and Nasdaq. There was little competition to begin with as Farley said that NYSE is the premier listing venue not just in the US but globally.

By choosing NYSE, Alibaba Group Holding Ltd (NYSE:BABA) is in an excellent position to benefit from the media exposure that comes with listing in the iconic building of New York Stock Exchange.

Moreover, there could be a wide variety of technical issues that could pop up with a listing of this magnitude. Alibaba Group Holding Ltd (NYSE:BABA) is granted a safety net in this regard as Farley pointed out that the intersection of humans with technology at the point of sales means that the process can be slowed down in case there is an imbalance of buyers and sellers.

With a listing on NYSE, Alibaba Group Holding Ltd (NYSE:BABA) is also poised to join the network of some of the greatest companies in the world and with strong growth figures that Alibaba Group Holding Ltd (NYSE:BABA) has, the venue is well suited for the company.

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