Caixin
Mar 27, 2024 04:09 PM
FINANCE

Alibaba Scraps Logistics Arm’s IPO After Market Turmoil Worsens

00:00
00:00/00:00
Listen to this article 1x
This is the second time Alibaba has nixed a high-profile IPO for one of its main businesses, casting more uncertainty over a restructuring that began last year. Photo: Bloomberg
This is the second time Alibaba has nixed a high-profile IPO for one of its main businesses, casting more uncertainty over a restructuring that began last year. Photo: Bloomberg

(Bloomberg) — Alibaba Group Holding Ltd. called off an IPO for its Cainiao logistics arm in Hong Kong, shelving a $1 billion-plus deal in a surprise move that underscores its new approach toward rejuvenating a flagging e-commerce empire.

It’s the second time Alibaba has nixed a high-profile debut for one of its main businesses, casting more uncertainty over a restructuring that began last year and has switched tack since the abrupt departure of former CEO Daniel Zhang. From an initial plan of splitting the company into six standalone divisions that could independently raise capital, the objective now is to combine operations to drive the mainstay commerce arm, while selling off non-core assets such as stakes in social media platform Bilibili Inc. and electric-vehicle maker XPeng Inc.

loadingImg
You've accessed an article available only to subscribers
VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article
Open WeChat and scan the QR code