Alibaba's logistics subsidiary, Cainiao Network Technology, has begun working with banks on preparations for its Hong Kong IPO, according to anonymous sources. The company is targeting a listing by the end of 2021 and has not yet decided on the IPO size. Cainiao is currently valued at over $20 billion. China International Capital Corp and Citigroup are reportedly among the banks involved in the preparations. Alibaba announced earlier this week that it would split into six units and consider fundraisings or IPOs for most of them.
March 30 (Reuters) - Alibaba Group Holding Ltd’s (BABA.N) (9988.HK) logistics arm Cainiao Network Technology has started preparations with banks for its Hong Kong initial public offering, Bloomberg News reported on Thursday, citing people familiar with the matter.
Banks including China International Capital Corp (3908.HK) and Citigroup Inc (C.N) are working with the company to prepare for the first-time share sale, according to the report.
Cainiao is targeting a listing as soon as the end of this year and the firm hasn’t decided on the IPO size, while the timeline is still subject to changes depending on market conditions, Bloomberg News reported.
The logistics unit is currently valued at more than $20 billion, the report said.
Cainiao, CICC and Citigroup did not immediately respond to Reuters’ requests for comment.
The report comes after Alibaba said earlier this week it was planning to split into six units and explore fundraisings or listings for most of them.