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Alibaba plans to embark on a restructuring plan by listing its logistics unit Cainiao in Hong Kong. This will be Alibaba’s first spin-off unit since it announced the spin-off six months ago. Alibaba has submitted an application to spin off Cainiao Intelligent Logistics Network to the Hong Kong Stock Exchange, but the specific issuance size and financial terms have not yet been finalized.
Alibaba will continue to hold more than 50% of Cainiao’s shares and will remain a subsidiary of the company after the spin-off. Cainiao plans to raise between $1 billion and $2 billion. Cainiao has raised a total of 31 billion yuan in three rounds of financing, including from investors such as Primavera Capital, GIC, Temasek and Kazanah Nasional Bhd.
Alibaba’s restructuring plan aims to provide financial support and explore capital increases or listings of its other subsidiaries. The plan, announced after founder Jack Ma ended his overseas stay, is aimed at spurring private sector growth. However, the Hong Kong IPO market has been sluggish under the influence of rising global interest rates and regulatory changes in China, with the value of Hong Kong IPOs in the first nine months of this year being less than US$3 billion, down from the same period last year.
(Source: Reuters, Image source: freepik)
