Alibaba Logistics Aims for $255 Million IPO

The group expects to raise $255 million in IPO capital through a Hong Kong listing in early 2024.

Cainiao Network Technology’s IPO comes after Alibaba said in late March 2023 that it would split into six units. The subsidiaries will either raise capital or go public, focusing on future growth. Cainiao, which has already started its IPO, is also in the process of raising between $128 million and $255 million.

Alibaba now acts as a giant online marketplace for buyers and sellers. In addition, the group has also implemented the acquisition of shares of leading express delivery companies, ensuring quality delivery services for the commercial segment.

The group also co-founded Cainiao in 2013. Other partners include department store owner Intime Group, conglomerate Fosun Group and several logistics companies. Alibaba took control of Cainiao four years ago, increasing its stake from 47% to 67%.

Cainiao, which provides software and shares data with warehouses, shipping lines and other logistics companies, previously reported revenue of 42 billion yuan (about $6.07 billion) in the nine months to December 2022; up 22% year-on-year, accounting for 6% of Alibaba's total revenue.

A corner of Cainiao's warehouse in Jiangsu, China, October 26, 2020. Photo: Aly Song

The logistics arm’s planned IPO is the first of several planned fundraising rounds for Alibaba spinoffs, and comes as the company embarks on the biggest restructuring in its 24-year history.

Experts say the split could ease oversight of Alibaba Group, which has been a goal of local regulators since late 2020 to reduce the influence of some private businesses. The five remaining units include Cloud Intelligence, Taobao Tmall Commerce, Local Services, Global Digital Commerce and Digital Media and Entertainment.

Cainiao’s potential IPO is widely anticipated and is expected to pave the way for other Alibaba subsidiaries to enter the market in the near future. It could also help revive Hong Kong’s stalled fundraising.

Although Alibaba has not disclosed potential listing locations for other units, bankers still predict that Hong Kong will be a potential destination because it is close to the group's "home" market.

About $1.5 billion has been raised in Hong Kong IPOs this year, up from $1.2 billion in the same period last year, according to Refinitiv data. Craig Coben, former head of Asia-Pacific capital markets at Bank of America, said Alibaba’s subsidiaries have the potential to be on the radar of major global investors.

Can Y (According to Reuters )

Source link: https://vnexpress.net/alibaba-logistics-dat-muc-tieu-ipo-255-trieu-usd-4602664.html