Alibaba e-commerce arm mulls US IPO

Alibaba's (9988) international online shopping unit is exploring a US initial public offering as soon as next year as it weighs options to spur growth for the business that includes major e-commerce brands Lazada and AliExpress.

Alibaba's US-listed shares spiked as much as 5 percent in pre-market trading in New York.

The unit, which competes with rivals such as Amazon.com in markets outside China, is one of six parts that Alibaba is splitting into.

Valuations for the international business units vary. Morgan Stanley in March priced "international retail" units - including Lazada and Trendyol - at roughly US$29 billion (HK$226.2 billion), while a CICC analyst report from the same month valued the firm's international division at about US$39 billion. In recent quarters, however, growth has been volatile in the face of global recessionary fears.

If it goes ahead with the listing, the Alibaba unit would join a number of high-profile Chinese firms, including fast-fashion leader Shein, seeking to tap American capital amid rising Sino-US tensions.

Separately, China Unicom (0762) said yesterday that it has won the Hong Kong bourse's approval to spin off its smart internet technology unit Smart Connection Technology for a separate listing in Shanghai's Star market.

The spin-off is subject to approval at its shareholders' general meeting and approval from other regulators including the China Securities Regulatory Commission.

Bloomberg and staff reporter