Chinese company Alibaba (NYSE: BABA) finally confirmed in a regulatory filing on Tuesday that it will list its logistics unit, Cainiao, on the Hong Kong Stock Exchange. The company stated that it will continue to hold a stake of more than 50% in Cainiao after the spinoff.
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The news comes after a Bloomberg report last week regarding the spinoff. Alibaba’s regulatory filing did not give more details on the pricing of the shares or on the expected date of the listing. Cainiao is one of the Chinese tech giant’s first business units to file for an initial public offer (IPO) listing.
Alibaba acquired a majority stake in Cainiao in 2017 and has around a 70% stake in the business. The company expects that the IPO may enhance Cainiao’s “standalone profile among its customers, suppliers and potential strategic partners, which will help Cainiao to be in a better position to negotiate and solicit more business.”
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