HONG KONG - S&P Dow Jones Indices, which compiles several of the world's most widely tracked stock benchmarks, said on Friday it had assigned Alibaba Group Holding Ltd (IPO-BABA.N: Quote, Profile, Research, Stock Buzz) a China domicile, opening the way for the company to be added to global benchmarks that include Chinese stocks.
The move means e-commerce company Alibaba would be screened for inclusion in the S&P China Broad Market Index (BMI) .SCRTCN, the S&P Emerging BMI .SCRTEM and S&P Global BMI , among others, S&P Dow Jones Indices said in a statement.
Inclusion on the indices creates demand from global fund managers that use them as a performance benchmark for their funds.
Alibaba, whose platforms handle more goods than EBay Inc (EBAY.O: Quote, Profile, Research, Stock Buzz) and Amazon.com Inc (AMZN.O: Quote, Profile, Research, Stock Buzz) combined, launched on Monday its highly anticipated initial public offering. At the top end of expectations, the IPO would raise $21.1 billion, topping Facebook Inc's (FB.O: Quote, Profile, Research, Stock Buzz) $16 billion listing in 2012 as the largest-ever technology IPO.
Alibaba could set a new record for the world's biggest IPO if underwriters exercise an option to sell additional shares to meet demand - putting it as high as $24.3 billion, and overtaking Agricultural Bank of China Ltd's (601288.SS: Quote, Profile, Research, Stock Buzz) $22.1 billion listing in 2010.
Despite the large size of the offering, Alibaba wouldn't be eligible to be included in some of the most popular US indices. The S&P 500 index .SPX and the Dow Jones Industrial Average .DJI, which are both compiled by S&P Dow Jones Indices, only accept companies with a US domicile.