Alibaba Group's logistics division plans to raise up to $2 billion (approximately 2.64 trillion KRW) through a Hong Kong stock market listing early next year, according to sources cited by major foreign media on the 7th (local time).
The initial public offering (IPO) of Cainiao Network Technology, Alibaba Group's logistics affiliate, is the first fundraising plan since announcing the largest organizational change since its founding in March.
In March, Alibaba announced it would split and reorganize its existing business units into six independent business entities, including logistics (Cainiao), cloud (Cloud Intelligence), e-commerce (Taobao, Tmall), delivery platform (Local Services), and entertainment (Digital Media Entertainment).
The structure consists of one holding company, six business groups, and a small number of N sub-companies, with the six main groups forming boards of directors and operating independently under a '1+6+N' system.
This logistics division listing is the first capital raising plan following the restructuring announcement, and foreign media report that IPOs for the remaining five divisions such as cloud and e-commerce are expected to follow. Experts analyze that the other business divisions will likely consider Hong Kong listings seriously, taking into account market accessibility and worsening political tensions between the U.S. and China.
Alibaba's restructuring is being carried out to escape the antitrust risks that the Chinese government has raised by splitting business groups and ensuring their independence. Some analysts suggest that this restructuring marks a shift in China's big tech policy from restraint to promotion.
Additionally, other big tech companies targeted by Chinese regulators are expected to adopt similar strategies (business structure reorganization and IPOs) like Alibaba, which is anticipated to improve investment sentiment toward the Hong Kong stock market. Although many Chinese big tech companies are listed on the Hong Kong stock exchange, they have not fully benefited from policy advantages due to regulatory uncertainties from Chinese authorities.
According to financial information provider Refinitiv, the Hong Kong stock market has raised $1.5 billion (approximately 2 trillion KRW) through new IPOs this year, a 25% increase compared to the same period last year ($1.2 billion).
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