Alibaba Group’s logistics unit, Cainiao, is rumoured to be in talks for an IPO launch in Hong Kong next year, making it the first of Alibaba’s six new business groups to start the process.
According to sources that declined to be named, Cainiao is looking to raise between 1 billion and 2 billion USD for the listing. Bankers hope the IPO could give Asia’s financial sector a much-needed capital markets boost, as Hong Kong’s IPO market witnessed a severe dry spell last year and is yet to fully recover.
This update comes just weeks after the announcement that Alibaba will split into six separate units, each run by its own CEO. It was also announced that five of the six new groups under Alibaba will be pursuing IPOs, though no timeline was given.
Cainiao Smart Logistics is one of these new groups, alongside Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, and Digital Media and Entertainment Group.
The overhaul announcement marked the end of Jack Ma’s time in the hot seat, as he was heavily targeted during the 2021-2022 tech crackdown imposed by the Chinese government. After a long stint overseas, Ma returned to China in March, when he gave a talk on ChatGPT at the Alibaba Yungu school in Hangzhou.
Foreign investors hailed both his return and the restructure as a sea change for China’s private sector, with a more hospitable environment expected ahead for foreign investment.
Neither Alibaba or Cainiao have commented on the above reports, and the plans may still be subject to change.
