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Cainiao Network Technology, the logistics arm of Alibaba (NYSE:BABA), is reportedly preparing for an IPO in Hong Kong, a Bloomberg report said early Thursday.
According to people familiar with the matter, the company has begun talks with investment banks, including China International Capital Corp (SS:601995) and Citigroup (NYSE:C), and aims to go public “as soon as the end of this year.”
Cainiao appears to be in the early stages of the process, and is yet to decide on the sizing of the offering as well as its exact timing, with the company’s representative reportedly saying it “doesn’t have a clear plan and timeline for an IPO.”
Cainiao, which operates nine overseas sorting centers, has over 500 global logistics partners, and brought in $2.4B in revenue in Q4 2022, is currently valued at over $20B, according to Bloomberg sources.
If confirmed, the logistics company is set to become the first of Alibaba’s business units to pursue a separate listing – earlier this week, the Chinese e-commerce giant said it intends to split the business into six units, and allow each one to pursue an IPO.
Shares of BABA are trading 1% higher in premarket on Thursday, just above the $100 level.
