The media reports that Alibaba Group plans to take its logistics business public.
Source: Pixabay.com
The media, citing their sources, report that the technology giant is currently negotiating with banks about the initial public offering (IPO) of its Cainiao Smart Logistics Group in the Hong Kong market.
The IPO may take place at the end of the year. Kainiao is valued at more than $20 billion.
A few days earlier, it became known about the transformation of the Alibaba structure. The group was divided into six subdivisions. This structural transformation of the company was the largest change in its 25-year history, which cost $ 250 billion.
Alibaba CEO Daniel Zhang, in a letter to employees, said that the initial meaning and fundamental goal of internal transformation is to make the organization more flexible, shorten the decision-making time and increase the speed of response to certain challenges and circumstances.
Daniel Zhang will remain the company’s chief executive officer, but will also serve as CEO of another new subdivision, Cloud Intelligence Group. Five of the six subdivisions will have their own managers. Also, these structural units will be able to engage in independent fundraising from outside and conduct IPOs.
Taobao Tmall Commerce Group does not have all the listed powers, as it manages the company’s commercial business in China and will remain wholly owned by Alibaba Group.
Daniel Chdan’s letter to employees did not say that the structural transformation would entail a reduction in the workforce but noted the intention to facilitate and refine operations in the middle and back office. So far, there is no explanation of what this vague wording means.
Alibaba’s transformation is a signal that the process of fundamental changes has begun in the Chinese technological environment. Current trends contrast with the previous specifics of the industry, in which just a few years ago Chinese regulators blocked the long-awaited IPO of Ant Group. The proposed dual listing in Hong Kong and Shanghai could be one of the largest in history.
By approving initial placements and not resisting capital raising, the Chinese government wants to promote innovation. Also, this path, if successfully implemented, will strengthen the country’s authority in the investment environment.
Now Chinese companies are facing problems in the US market. For example, Alibaba and Tencent appeared on the list of counterfeiting and piracy markets of the government of this country. TikTok may soon be banned in the United States. The relevant initiative is currently being considered by Congress.
As we have reported earlier, Alibaba Sells Stake in Paytm.
