Alibaba announced in a regulatory filing on Tuesday that its logistics unit, Cainiao, will be listed on the Hong Kong Stock Exchange. After the spin-off is complete, Alibaba will still own more than 50% of the shares of Cainiao. This is part of one of the most major changes to take place at Alibaba, which originally stated in March that the business will be divided into six distinct entities, the majority of which will be allowed to go public.
Alibaba declared in a regulatory filing on Tuesday that it plans to spin off its logistics unit, Cainiao, for listing on the Hong Kong Stock Exchange. Despite the spinoff, the Chinese e-commerce giant will still hold a majority of Cainiao's shares. This move is a part of the most significant reorganization in the company's history and Cainiao is the first of these businesses to file for an IPO. The Hong Kong Stock Exchange has approved the listing, yet there is no data yet on the pricing of shares or the expected listing date.Cainiao is a logistics network established in 2013 to help Alibaba deliver orders placed on its e-commerce platforms in China and other countries. The company currently holds a 70% interest in Cainiao which is associated with its goal of 24-hour delivery in China and 72-hour delivery elsewhere.JD.com, one of the Alibaba's rivals, has invested in same-day delivery in an attempt to gain a competitive edge. The spinoff of Cainiao will "enhance its standalone profile among customers, suppliers and strategic partners," Alibaba said. At the same time, it will also align the management of the company and Cainiao with their operating and financial performance.Besides the Cainiao spinoff, Alibaba is also planning to IPO its cloud computing business. However, it has yet to officially file for a spinoff.
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