Alibaba IPO comes with unusual structure

Published September 1, 2014 6:29am ET



BEIJING (AP) — Foreigners who want to buy Alibaba Group shares in the Chinese e-commerce giant’s U.S. public offering will need to get comfortable with an unusual business structure.

Alibaba’s online and mobile commerce businesses will be controlled by a “variable interest entity,” an arrangement meant to allow investors to buy into Internet and other businesses in which Beijing bans or limits foreign ownership.

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