Cainiao Network Technology, the logistics arm of Alibaba Group, is reportedly planning to file for an Initial Public Offering (IPO) in Hong Kong, aiming to raise over $1 billion from the sale of shares. The IPO would make Cainiao one of Alibaba’s first units to go public. The specific valuation has yet to be determined, and final decisions have not been made. Bloomberg previously reported that Cainiao has been working with banks such as Citic Securities, Citigroup, and JPMorgan Chase on the IPO. However, China International Capital had to drop out due to conflicts of interest.
Meanwhile, Alibaba has decided to delay its Hong Kong IPO plans for its grocery chain Freshippo. The decision was made due to weak market sentiment for consumer stocks in China. The focus will now shift to listing Alibaba’s other units.
Cainiao, co-founded by Alibaba and eight other companies in 2013, plays a crucial role in delivering goods for Alibaba’s online marketplace. As of May 2023, Alibaba has a 67% stake in Cainiao. The logistics company has expanded globally, providing delivery services for millions of merchants and brands on platforms like AliExpress and Lazada. Cainiao has a network of over 3,000 logistics partners worldwide and operates more than 300 routes. It aims to deliver packages within 24 hours in China and within 72 hours worldwide.
What is Cainiao?
Cainiao is the logistics arm of Alibaba Group, responsible for delivering goods for Alibaba’s online marketplace and providing services for merchants and brands.
How much does Cainiao aim to raise in its Hong Kong IPO?
Cainiao is looking to raise more than $1 billion from the sale of shares in its Hong Kong IPO.
Why did Alibaba delay the Hong Kong IPO plans for Freshippo?
The decision to postpone the IPO for Freshippo was due to weak market sentiment for consumer stocks in China.
What is Alibaba’s stake in Cainiao?
As of May 2023, Alibaba has a 67% stake in Cainiao.
What are Cainiao’s delivery capabilities?
Cainiao aims to deliver packages within 24 hours in China and within 72 hours worldwide. It works with over 3,000 logistics partners globally and operates more than 300 routes.