China’s largest e-commerce company, Alibaba, announced in a regulatory filing on Tuesday that it intends to list its logistics division, Cainiao, on the Hong Kong Stock Exchange.
Even when Cainiao is spun off, Alibaba will still own more than 50% of the company’s shares.
One of Alibaba’s most drastic restructurings in company history is represented by this move. The corporation announced in March that it will divide its organization into six business divisions, the majority of which would be able to raise outside capital and float on the stock market.
Of these companies, Cainiao is the first to formally register for an initial public offering (IPO).
According to Alibaba, the Cainiao listing may proceed after being confirmed by the Hong Kong Stock Exchange. A request for comment from CNBC was not immediately answered by the exchange.