Cainiao set for an IPO?
31 / 03 / 2023
Just days after e-commerce giant Alibaba announced plans to split its business up, reports are circulating that its logistics unit could be set for an initial public offering (IPO).
Bloomberg yesterday reported that Alibaba’s logistics arm, Cainiao, is holding talks with banks over a potential IPO in Hong Kong.
Quoting people familiar with the matter, the newswire said that banks including China International Capital Corp and Citigroup were helping the company prepare for a share sale.
A listing could come before the end of the year with the company valued at around $20bn, the contacts said.
Earlier this week, Air Cargo News reported that the e-commerce giant is splitting its business into six units each to be managed by its own chief executive and board of directors.
This would allow the units to raise funds through share offerings, the company said.
“The market is the best litmus test, and each business group and company can pursue independent fundraising and IPOs when they are ready,” said Daniel Zhang, who will continue to serve as chairman and chief executive of the Alibaba Group, in an email to employees.
The group will follow a holding company model, according to Alibaba’s news website, Alizila.
The six new groups will be made up of the Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics and Digital Media and Entertainment Group.