Posted 3/26/2024, 12:42:11 PM
Alibaba Drops $1B Cainiao IPO Plans, Opts to Take Logistics Unit Private for $3.75B Amid Slowing Growth
- Alibaba calls off planned $1B IPO for its Cainiao logistics unit in Hong Kong due to poor market conditions
- Instead, Alibaba will buy out all remaining Cainiao stock held by investors and employees for $3.75B
- Cainiao handles a major chunk of the millions of packages from Alibaba's e-commerce business daily
- Alibaba posted lower-than-expected 5% revenue growth in December quarter amid increasing competition
- This is the second time Alibaba has canceled a high-profile IPO for a main business, after its cloud unit in 2023