Alibaba’s Cainiao files for US$1 billion IPO, helping Hong Kong to land biggest listing since August 2022
- The logistics company’s plan to sell US$1 billion shares would be second only to the recent US$5 billion listing of SoftBank-owned chip maker Arm
- It would also be the city’s first billion-dollar listing since China Tourism Group Duty Free’s US$2.3 billion deal in August 2022
Cainiao Smart Logistics Network has applied to raise funds in Hong Kong in what is widely expected to be the city’s second-largest initial public offering (IPO) this year, as the first of Alibaba Group Holding’s six spin-off companies tests the appetite for new listings in Asia’s third-biggest capital market.
Cainiao has submitted its A1 filing to the Hong Kong stock exchange, Alibaba said in an exchange filing in Hong Kong.
The company is aiming to raise at least US$1 billion, subject to market conditions, according to sources. Upon completion of the proposed spin-off, Alibaba will continue to hold over 50 per cent of Cainiao, retaining it as a subsidiary. Alibaba holds about 69.54 per cent of Cainiao as of Tuesday.
The filing by Hangzhou-based Cainiao comes at a crucial time for Hong Kong’s stock market, as its benchmark Hang Seng Index struggles to claw its way out of this year’s 11.7 per cent slump. Downbeat sentiment has kept start-ups away from new listings in 2023.
