Logistics firm Cainiao seeks IPO in Hong Kong

Cainiao Smart Logistics Network Ltd, a unit of Chinese tech heavyweight Alibaba Group Holding Ltd, has officially filed its application for an initial public offering on the Hong Kong bourse, as the company steps up efforts to build logistics networks across the globe and boost its delivery efficiency.

Industry experts said the move will make Cainiao the first Alibaba business unit to go public after Alibaba said that it would split into six business groups, each with the ability to raise external funding and seek its own IPO, representing the most significant reorganization in its 24-year history.

CITIC Securities, Citibank and JPMorgan are joint sponsors of the offering, according to the prospectus filed by Cainiao. Founded in 2013, Cainiao, which handles logistics and parcels for merchants both in China and abroad, said in its prospectus that its revenue rose 34 percent year-on-year to 23.2 billion yuan ($3.18 billion) in the second quarter.