[ad_1]
Alibaba subsidiary targets $1 billion in Hong Kong IPO
Business
September 22, 2023 | 04:40 pm
Cainiao Network Technology, the logistics subsidiary of Alibaba Group, is preparing to submit its application for an initial public offering (IPO) in Hong Kong as soon as next week.
The company’s objective is to generate a minimum of $1 billion through this share offering, and specific valuation details are still under consideration.
This strategic move could potentially give Cainiao a lead over other Alibaba entities in their pursuit of independent stock listings.
Cainiao’s global expansion
Founded by Alibaba in 2013, Cainiao serves as the delivery backbone for the tech giant’s Chinese online marketplaces.
The logistics unit later expanded into the global e-commerce arena, handling parcels for millions of merchants and brands on platforms like AliExpress and Southeast Asia’s Lazada.
Cainiao operates over 300 international routes, partnering with more than 3,000 logistics partners, and promises 24-hour delivery in China and 72-hour delivery worldwide.
Top banks collaborate on Cainiao’s IPO
Cainiao has been working with banks such as Citic Securities Co, Citigroup Inc., and JPMorgan Chase & Co. on its IPO.
China International Capital Corporation dropped out due to conflicts of interest, as it serves as a joint sponsor of J&T Global Express, another logistics firm seeking Hong Kong listing approval next week.
Freshippo IPO delayed amid weak sentiment
Cainiao’s IPO could significantly impact Alibaba’s other units and the market.
Alibaba has put the Hong Kong IPO of its Freshippo grocery chain on hold amid weak sentiment for consumer stocks in China.
The capital management committee of Alibaba recently decided to wait for a more favorable market before moving forward with a Freshippo IPO and will prioritize the listings of other units.
Shares of Alibaba rose as much as 4.4% in Hong Kong following the IPO announcement.
Share this timeline
[ad_2]
Source link