Cainiao IPO gets go ahead
19 / 05 / 2023
Chinese e-commerce specialist Alibaba Group plans to start exploring an IPO for its logistics unit Cainiao.
The Group said its board has approved the process and it aims to complete the initial public offering in the next 12 to 18 months.
“Our board of directors approved the commencement of a process to explore an initial public offering of Cainiao Smart Logistics,” said Alibaba Group.
“The group provides supply chain, logistics and delivery services to consumers and merchants that are customers of Taobao & Tmall Group and Alibaba International Digital Commerce Group, as well as third party customers.
“Alibaba Group holds a 67% equity interest in Cainiao Smart Logistics.
“Other shareholders in the business group include strategic investors in the logistics industry and global institutional investors.”
Air Cargo News first reported on speculation about a Cainiao IPO in March.
This was preceeded by Alibabab’s announcement that it would 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.
In the first quarter of 2023 ended March 31, the Group said it recorded revenue of $30,316m, an increase of 2% year over year.