Plan to Raise 1.3 Trillion Won
China's Alibaba Group's logistics division plans to raise $1 billion (approximately 1.336 trillion KRW) through a Hong Kong stock market listing, Bloomberg reported on the 22nd (local time), citing sources.
According to sources, Cainiao Network Technology, Alibaba Group's logistics affiliate, is expected to submit an initial public offering (IPO) application to the Hong Kong Stock Exchange as early as next week.
Cainiao's IPO is the first fundraising plan since announcing the largest organizational change since its founding in March.
In March, Alibaba announced it would restructure 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 in a '1+6+N' system.
This logistics division listing is the first capital raising plan following the restructuring announcement, and major foreign media report that IPOs for the remaining five divisions, including cloud and e-commerce, will follow.
Alibaba's stock price closed at 85.90 Hong Kong dollars on the Hong Kong stock market that day, up 3.93% on expectations for Cainiao's IPO. This is the largest increase in the past three weeks.
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