Alibaba's logistics arm files for US$1b HK IPO

Alibaba (9988) yesterday said it will spin off Cainiao Smart Logistics Network, the logistics arm of its ecommerce empire, through an initial public offering in Hong Kong.

The Hong Kong exchange confirmed that the company can proceed with its proposed Cainiao spinoff and IPO, according to a filing yesterday. Alibaba will continue to hold more than 50 percent of the unit's shares, and Cainiao will remain a subsidiary of the company, the filing shows.

The Cainiao IPO would be among the first of Alibaba's units to go public after a dramatic breakup of the tech giant unveiled earlier this year. The first-time share sale could raise at least US$1 billion (HK$7.8 billion), and banks including Citic Securities, Citigroup and JP Morgan Chase have been working on the deal.

Alibaba co-founded Cainiao in 2013, using it as the delivery backbone for its Chinese online marketplaces. The unit followed Alibaba's footsteps into the global ecommerce arena, handling parcels for millions of merchants and brands on platforms like AliExpress and Southeast Asia's Lazada.

Cainiao, which means rookie or amateur in Chinese, promises to deliver packages in China within 24 hours and anywhere else in the world in 72 hours, according to its website. It operates over 300 international routes partnering with more than 3,000 logistics partners.

Meanwhile, the Thai supermarket chain Big C plans to go public in Hong Kong next year, potentially becoming the largest Thai company listed on the exchange, and building on the successful rollout of its retail stores in the city.

Chief executive Aswin Techajareonvikul said that Hong Kong's swift recovery amidst the pandemic positions it as both a prominent financial center in Asia and a crucial gateway linking Southeast Asia and China. Big C presently operates 24 stores in Hong Kong and aims to expand to 99 stores within the next three years.

Chinese automobile service platform Tuhu (9690) saw its share price closed at HK$29.5 on its debut trading day, marking a 5.4 percent increase over the HK$28 offering price.