26 Mar Alibaba scraps Hong Kong IPO plan for logistics unit Cainiao as it tweaks restructuring
Alibaba scraps Hong Kong IPO plan for logistics unit Cainiao as it tweaks restructuring
Alibaba Group Holding has decided to withdraw the initial public offering (IPO) for its logistics operation Cainiao in Hong Kong and has offered to buy all remaining shares in the unit, in another major change to its original restructuring plan.
The Hangzhou-based e-commerce giant said it will invest up to US$3.75 billion to buy the remaining shares from minority shareholders of Cainiao Smart Logistics Network Ltd in a departure from an earlier plan to list the unit in Hong Kong. Alibaba currently owns 64 per cent of Cainiao. The offer values Cainiao at US$10.3 billion.
In a statement on Tuesday, Alibaba chairman and co-founder Joe Tsai said that Alibaba had decided it was an appropriate time for the company “to double down on its investment in Cainiao”, given the unit’s “strategic importance”.
The decision comes four months after Alibaba decided to walk away from an earlier plan to spin off its cloud unit. In a sweeping restructuring plan unveiled in 2023, Alibaba said at the time it would seek an IPO for Cainiao, and the unit made an A1 filing to the Hong Kong stock exchange last September.
Established in 2013, Cainiao has ballooned into a 100 billion yuan (US$13.7 billion) behemoth and one of China’s largest so-called unicorns – as private companies with a valuation of more than US$1 billion are known.
