Alibaba open to IPO concessions

Alibaba Group would cut the number of partners the firm has and bind them to a three-year share sale ban if Hong Kong regulators accept a controversial management structure that is blocking its potential HK$100 billion initial public offering, a source close to the listing authorities told the South China Morning Post.

The proposal had been floated to the stock exchange's listing committee ahead of a regular meeting tomorrow, but no formal listing application had yet been submitted, the source said.

"This is aimed at showing that Alibaba is willing to make concessions," the source said.

Another source close to the Securities and Futures Commission said such a concession was unlikely to be enough to persuade the authorities to accept the Alibaba structure. "Alibaba will still not give up its demand to nominate the majority of board directors, which still gives more power to certain shareholders than others. That is unacceptable to the SFC," the source said.

Share lock-ups for executives are not uncommon in initial public offerings.

Alibaba had no comment, but a source close to the company said talks were continuing and constructive.

The e-commerce giant's planned listing is in limbo over its management's determination to maintain a partnership structure that regulators worry gives top executives more rights than ordinary shareholders.