Chinese e-commerce giant Alibaba Group Holding Limited plans to list its logistics division Cainiao Smart Logistics Network Limited as an independent company on the Hong Kong Stock Exchange. The company announced corresponding plans on Tuesday.
Specific details of the planned IPO of the previous division, which bundles Alibaba’s logistics activities and other e-commerce services, have not been published. Even after the spin-off, Alibaba will hold more than half of the shares in the company, so that it will remain a subsidiary of the group, according to a statement. According to its own information, Alibaba currently holds around 69.5 percent of the shares in Cainiao.
The aim of the spin-off is to give Caniao better access to the financial markets in the future and to attract new investors, explained Alibaba. As majority owner, the group will benefit from the expected increase in value of the company.