Alibaba files for logistics arm IPO
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The news: Chinese e-commerce giant Alibaba has kicked-off its restructure plans by filing for an initial public offering of its logistics arm Cainiao on the Hong Kong Stock Exchange.
The numbers: The financial terms and size of the offering are yet to be determined but Reuters reports Alibaba, which owns a 69.5% stake in Cainiao, will remain a majority shareholder after the spin-off. Alibaba contributed to roughly 30% of Cainiao's revenues between 2021 and 2023, and Cainiao was responsible for about 10% of Alibaba's income in the latest quarter.
The context: The spin-off would become the first unit detached from Alibaba after the group in March announced it would break into six smaller entities: Cloud Intelligence, Taobao Tmall Commerce, Local Services, Cainiao Smart Logistics, Global Digital Commerce and Digital Media and Entertainment. The restructure follows a regulatory crackdown by Beijing in late 2020 that wiped 70% from Alibaba's share price in the subsequent years. China has since promised to ease restrictions and support private industry.
