Posted 3/26/2024, 3:13:45 PM
Alibaba Cancels $1B Cainiao IPO, Buys Logistics Arm to Boost E-commerce Instead Amid Market Turmoil
- Alibaba has scrapped plans for a $1B+ IPO of its Cainiao logistics arm in Hong Kong due to market turmoil and shifting corporate strategy
- This is the 2nd major IPO cancellation recently, after nixing plans to take its cloud business public in 2023
- Alibaba will buy out remaining Cainiao shares for $3.75B and integrate it into its core e-commerce operations
- The move reflects a strategy shift from spinning off units to focusing on integrating operations to boost main e-commerce business
- Alibaba is still looking to sell some non-core assets like stakes in Bilibili and Xpeng and explore offloading retail chains