Freshippo gears up for IPO

Alibaba's (9988) Freshippo is expected to go public in Hong Kong as early as November, which if confirmed could be first unit of the e-commerce giant to list after its historic reorganization earlier this year.

And JD.com (9618) might set up a new independent retail unit which will resemble Alibaba's fresh food grocery chain.

Freshippo has appointed China International Capital Corporation (3908) and Morgan Stanley as sponsors with a target valuation of US$4 billion (HK$31.2 billion) to US$5 billion, and will soon apply to the Hong Kong exchange for approval to spin off the unit, media reports said.

Alibaba's logistic unit Cainiao will also apply for listing in Hong Kong in the third quarter at the earliest. It has appointed Citi, Citic Securities and JP Morgan to arrange the listing, with a target valuation of about US$15 billion to US$20 billion, and an estimated proceeds of US$1.5 billion to US$2 billion.

Meanwhile, JD aims to create an independent unit by merging its 7Fresh supermarket chain with other online services, establishing a retailer of fresh food and groceries that serves millions nationwide.

China's No 2 e-commerce firm plans to set up what it called an "Innovative Retail" operation that includes 7Fresh supermarkets, group-buying platform Pinpin as well as on-demand services, a person familiar with the matter said.

JD last week said it aims to create seven listed firms with market values of at least US$14 billion apiece, outlining aggressive targets spanning two decades as it wrapped its 2023 sales gala with another record haul.

7Fresh opened its first store in Beijing in 2017 and is part of JD's broader effort to expand its footprint and services into physical retail, to complement its online platform.

As per mainland media reports, Yan Xiaobing, the former head of JD's international business, has officially returned and will now lead the new retail segment.

But JD's shares tumbled by more than 2.8 percent yesterday after a series of executives moves.

JD Logistics (2618) announced the resignation of Yu Rui from the position of chief executive due to personal health reasons. Stepping into the role will be Hu Wei.

In other news, J&T Global Express has added three overall coordinators for its IPO in Hong Kong, including UBS Hong Kong branch, CCB International Capital and CMB International Capital.

And Hong Kong Exchanges and Clearing (0388) has entered into a partnership with the Ningbo government, to help local firms to go public in Hong Kong.