Meanwhile, Alibaba has put a hold on Hong Kong IPO plans for its grocery chain Freshippo.
The Alibaba Group’s logistical arm Cainiao Network Technology is set to reportedly file for its Hong Kong Initial Public Offering (IPO) by next week, making it one of Alibaba’s first units to go public. According to sources familiar with the matter, the logistics firm is looking to raise more than $1 billion from the sale share. They added that the valuation has not been decided on and no final decisions have been made so some details could change.
Bloomberg reported earlier this year that the logistics firm has been working on the IPO with banks such as Citic Securities, Citigroup and JPMorgan Chase. Sources suggest that China International Capital had to drop out of the process due to conflicts of interest as it is a joint sponsor of J&T Global Express, a logistics company that is also seeking Hong Kong listing approval next week.
Meanwhile, Alibaba has put a hold on Hong Kong IPO plans for its grocery chain Freshippo. The conglomerate’s capital management committee is reportedly putting in a pin in the IPO due to weak sentiment for consumer stocks in China. Priority will instead be given to listing Alibaba’s other units.
Cainiao (Chinese for ‘newbie’ or ‘amateur’) was co-founded by Alibaba and eight other companies in 2013 including department store owner Intime Group, the Fosun Group and some logistics firms. It then went on to serve a vital role in making deliveries for the rapidly growing online marketplace. Alibaba took charge of the business’ operations four years later and had a 67% stake in the firm as of May this year. The company has also grown to join the global e-commerce sector, delivering goods for millions of merchants and brands on marketplaces such as AliExpress and Southeast Asia’s Lazada.
The company’s website promises clients within China deliveries within 24 hours with 72 hours for other locations worldwide. It works with over 3000 logistics partners globally and operates over 300 routes.
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