Alibaba's logistics unit Cainiao plans to raise at least $1B via Hong Kong IPO - report
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Alibaba's (NYSE:BABA) logistics unit Cainiao Network Technology intends to file for a Hong Kong IPO as soon as next week, Bloomberg News reported citing people with knowledge of the matter.
The Chinese e-commerce giant's unit plans to raise at least $1B via the stock sale, however, it was still early to decide on the valuation. No final decision has been reached and the details could still change, according to the report.
Alibaba's shares were up ~4% on the Hong Kong stock exchange. The stock has also risen ~4% premarket on Friday on the NYSE. Other Chinese tech stocks were also in the green premarket on the U.S. exchanges â Bilibili (BILI) ~6%, Baidu (BIDU) ~4%, JD.Com (JD) ~4%.
Cainiao has been in talks with banks including Citic Securities, Citigroup and JPMorgan Chase & Co. on the IPO, Bloomberg News had reported in June.
Another logistics company, J&T Global Express is also planning to seek approval from the Hong Kong stock exchange approval as soon as next week for an IPO, Bloomberg News reported in a separate report citing sources.
A filing by Cainiao could see it propel ahead of Alibaba's other units on the path to separate listings. In March, Alibaba announced that it would split its business into six main units â including e-commerce, media and the cloud â each of which will explore fundraising or IPOs. Alibaba's (BABA) enterprise communication and collaboration platform DingTalk is also reportedly going to split from the e-commerce giant's cloud unit.
Earlier this month Alibaba reportedly held off on a potential Hong Kong IPO of its Freshippo supermarket chain on concerns amidst weak sentiment for consumer stocks in China.
Alibaba's new group CEO Eddie Wu Yongming intends to focus on two main themes going forward, "user first" and "AI-driven," according to a report.
Alibaba co-founded Cainiao in 2013 and took control of the business later. The unit delivered parcels for millions of merchants and brands on platforms such as AliExpress and Southeast Asia's Lazada, the report added.
Cainiao vows to deliver packages in China within 24 hours and within 72 hours anywhere else in the world, as per its website.

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