Finance

Alibaba Scraps Cainiao IPO Amid Market Downturn, Eyes Acquisition

Mar 26, 2024 1 min read

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Alibaba Group Holding Ltd. has cancelled the planned initial public offering (IPO) of its logistics subsidiary, Cainiao Smart Logistics Network, on the Hong Kong Stock Exchange, citing unfavorable market conditions. This is the second time Alibaba has delayed taking one of its business segments public; previously, it called off the IPO of its cloud unit. Amidst these market uncertainties, Alibaba has made an offer to buy out the remaining shares of Cainiao that it does not already own, proposing a price of $0.62 per share, which would total up to $3.75 billion for the outstanding stock.

This decision to cancel the Cainiao IPO and move towards full ownership indicates a strategic pivot for Alibaba, as the company faces economic headwinds, including a property crisis and waning foreign investor confidence in Beijing. Concurrently, Alibaba is reportedly considering divesting some of its non-core assets, including the InTime department store chain and other retail operations, as it looks to refocus its business amid slowing consumer spending and increasing competition from rivals such as PDD and ByteDance Ltd.

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