Alibaba hits a speed bump in rush to list; IPO pushed back to September
Chinese e-commerce giant pushes back offering to September as it seeks more time for regulatory approvals slowed down by acquisition spree
Alibaba Group Holding will wait until September to conduct its United States initial public offering, a person with knowledge of the matter said, as it seeks regulatory approval of its prospectus.
The Chinese e-commerce giant had been targeting a debut early next month that would have had its executives on the road to meet investors soon, people familiar with the situation said this week.
The company is now seeking to avoid rushing the deal as it continues talks with the Securities and Exchange Commission.
Alibaba had been on an acquisition spree, adding stakes in logistics, media and retail companies, that might be slowing down the approval process, said Max Wolff, an independent analyst.
Regulators have also had to consider Alibaba's unique governance model and that - like other Chinese internet companies - it relies on a legal structure that could potentially be invalidated.
They have been on an acquisition superstreak [that is] less positive for speed
"It was probably doable to get it out in August, but ambitious," Wolff said. "They have been on an acquisition superstreak. That's much less positive for speed."