Chinese Internet Giant Could Win Largest Ever U.S. Initial Stock Offering

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Free Beacon:

A Chinese Internet giant is expected to win approval from the Securities and Exchange Commission (SEC) for potentially the largest ever U.S. initial stock offering despite a myriad of investment and security risks posed by the IPO, critics say.

 

Alibaba Group Holding Ltd., a Chinese company whose online retail sales exceed those of U.S. competitors, such as Amazon or Ebay, currently awaits SEC approval for the stock sale that could raise as much as $20 billion. The SEC has assented to several IPOs of Chinese companies with similar corporate structures since 2000.

 

However, critics of the offering say the potential financial benefits for U.S. investors mask serious concerns about Alibaba’s opaque corporate structure, the risks involved for U.S. shareholders, and the personal security of Americans. Congress and the Obama administration have raised few objections to the stock sale.