Alibaba’s Cainiao Responds to Rumors of Raising $2 billion and IPO in Hong Kong

Recently, news of Cainiao‘s listing in Hong Kong has once again surfaced. The news states that Alibaba‘s logistics subsidiary, Cainiao, plans to IPO in Hong Kong in early 2024 and aims to raise $2 billion. In response to this, Cainiao stated that “We do not comment on market rumors”.

This is the second time this year that news of Cainiao’s listing has emerged. On March 30th, it was reported that Cainiao plans to go public in Hong Kong and may complete the process as early as the end of this year. At that time, Cainiao responded that there was no clear plan or timetable.

Founded in 2013, Cainiao relies on the e-commerce platform of the Alibaba Group. Its current business scope covers multiple areas including community services, global logistics, and intelligent supply chain.

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In February of this year, Alibaba released its Q3 financial report for the 2023 fiscal year.

For the quarter ending on December 31, 2022, Cainiao’s revenue increased by 17% YoY to $3.338 billion before offsetting cross-departmental transactions, with 72% coming from external customers. After offsetting cross-departmental transactions, Cainiao’s revenue increased by 27% YoY to $2.4 billion.

The Hurun Research Institute previously released the “2023 Global Unicorn List”, which listed non-public companies founded after 2000 with a value of over $1 billion globally. Among them, Chinese companies such as Cainiao, Huolala (Lalatech), DiDi Freight, and SF Express were all included.

According to the list, Cainiao ranks 10th with a value of USD 268 billion, making it one of the four Chinese companies in the Top 10 (the other three being Ant Group, Shein, and WeBank ).