By Greg Gao
(JW Insights) Sep 27 -- China’s e-commerce giant Alibaba announced on September 26 that it plans to spin off its logistics company Cainiao and list it independently on the main board of the Hong Kong Stock Exchange.
The company has submitted a spin-off proposal to the Hong Kong Stock Exchange for approval, and the Exchange has confirmed the company’s eligibility for the proposed spin-off.
Alibaba’s announcement revealed that the proposed spin-off will be conducted through a global offering of Cainiao shares, including a public offering in Hong Kong and an international offering. After the spin-off is completed, the company will continue to hold over 50% of Cainiao’s shares, retaining Cainiao as its subsidiary.
Cainiao has appointed Citigroup, Citic Securities, and JPMorgan to be the joint sponsors of its IPO.
With its registeration in the Cayman Islands, Cainiao was established on May 20, 2015. As of September 26, Alibaba holds approximately 69.54% of Cainiao’s shares. Currently, Cainiao provides innovative logistics services and solutions to brands, e-commerce platforms, consumers, and logistics companies in China and globally. Cainiao’s main businesses include international logistics, domestic logistics, technology, and other services.
The logistics company has raised a total of RMB31 billion ($4.24 billion) in three funding rounds since it was formed, and its other investors include Primavera Capital, Singaporean sovereign wealth GIC and Temasek as well as Malaysia’s Kazanah Nasional, according to media report.