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Post/wire say Alibaba IPO faces added SEC scrutiny

2014-08-18 07:38 ET - In the News

The Financial Post reports in its Saturday edition Alibaba Group Holding's planned initial public offering may face added scrutiny from U.S. regulators after accounting irregularities at its film unit. A Bloomberg dispatch to the Post says Alibaba Pictures uncovered possible accounting flaws and will not publish its midyear results on time. The Hong Kong-listed media company appointed a new chief executive officer this month, after Alibaba acquired 60 per cent of it for about $800-million (U.S.). As Alibaba prepares its U.S. IPO in September, the Securities and Exchange Commission's primary focus will be to ensure Alibaba properly discloses irregularities. Firms going through the IPO process often amend their registration documents with the SEC when they encounter business changes, and Alibaba has already filed several amendment forms since its initial filing in May. A company going through the process is aiming to answer all SEC questions on its prospectus before it goes on a road show to chat up investors. Alibaba had planned for an Aug. 8 debut, but the company is now aiming for a trading date of Sept. 16. Alibaba does not expect problems at Alibaba Pictures to delay it from the September target.

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