Alibaba Group Holding Ltd. BABA shares are trading higher following a report suggesting the company's logistics unit is preparing for a Hong Kong IPO.
What to Know: According to a Bloomberg reporte, Alibaba's logistics arm, Cainiao Network Technology has begun preparations with banks for its Hong Kong initial public offering. Cainiao, working alongside banks such as China International Capital and Citigroup, is reportedly looking for a listing as early as the end of 2023. The firm has yet to determine the size of the IPO, however, the company is currently valued at $20 billion.
This news comes after Alibaba announced its plans to split into six separate entities earlier this week to the delight of many investors who viewed the split as an opportunity for more efficient operations. The company plans to explore fundraising or listings for most of its units.
Cainiao is a logistics company focused on speed, able to deliver a package anywhere in China in 24 hours, and to the rest of the world in 72 hours. It is partnered with over 500 logistics companies worldwide.
As measured by gross merchandise volume, Alibaba is the world's largest online and mobile commerce company. It operates China's online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
According to data from Benzinga Pro, Alibaba Group shares were up 4.04%, trading at $103.96 at the time of publication. The stock has a 52-week high of $125.84 and a 52-week low of $58.02.
Image courtesy of Alibaba Group Holdings Ltd.
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