Cainiao files for IPO on the Hong Kong Stock Exchange
27 / 09 / 2023
E-commerce giant Alibaba will list its logistics business Cainiao on the Hong Kong Stock Exchange in an IPO that could raise as much as $1bn.
On Tuesday, Alibaba submitted its application to list its logistics business on the stock exchange, although the financial terms and size of the offering were not disclosed.
The South Morning China Post reports that Alibaba hopes to raise as much as $1bn.
Currently, Alibaba owns a 69.5% stake in Cainiao and the plans will see it continue to hold 50% of its logistics arm, which will also remain a subsidiary of the company.
Other shareholders include strategic investors in the logistics industry and global institutional investors.
The company will need approval from the China Securities Regulatory Commission before the IPO can go ahead.
The move to list Cainaio was approved by the board earlier this year, although it was not known at the time where the listing would take place.
It is part of efforts to restructure the company that will split 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.
Cainiao will be the first of the units to go public.