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Alibaba’s logistics arm, Cainiao Network Technology, plans to raise up to US$2 billion through a Hong Kong IPO in early 2024, sources told Reuters.
The IPO is part of Alibaba’s restructuring plan, which involves splitting its business into six units.
This is the first publicly reported capital raising plan from Alibaba’s units, which is expected to boost the sluggish Hong Kong capital markets.
The firm’s five other units – Cloud Intelligence, Taobao Tmall Commerce, Local Services, Global Digital Commerce, and Digital Media and Entertainment – plan to pursue their own public listings.
Founded in 2013, Cainiao reported a 22% year-on-year increase in revenue in the nine months ended December 2022, reaching US$6.1 billion.
See also: Alibaba’s financial health in 5 charts
Editing by Miguel Cordon and Lorenzo Kyle Subido
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