Yahoo Finance Citic, JPMorgan Replacing CICC in Cainiao’s Hong Kong IPO, Sources Say
(Bloomberg) -- Cainiao Network Technology Co., the logistics arm of Alibaba Group Holding Ltd., has seen a reshuffle in the banks that are preparing for its Hong Kong initial public offering, people familiar with the matter said.
Most Read from Bloomberg
Prigozhin Turns Forces Back in Deal With Kremlin to Drop Charges
Russia Latest: Zelenskiy Adviser Says Wagner Remains in Ukraine
Russia Latest: Kremlin Says It Gave Prigozhin Deal to End Mutiny
China International Capital Corp. has to drop out to avoid conflicts of interest as the investment bank is a joint sponsor of J&T Global Express Ltd., one of Cainiao’s rivals in China, the people said. Banks including Citic Securities Co. and JPMorgan Chase & Co. have instead joined Citigroup Inc. in arranging Cainiao’s IPO, said the people, who asked not to be identified as the information is private.
Deliberations are ongoing and the bank lineup could still change, the people said. Representatives for Citi, Citic Securities and JPMorgan declined to comment, while representatives for Cainiao and CICC didn’t immediately respond to requests for comment.
Hong Kong is expecting at least three major Chinese logistics companies to list in the coming months, potentially reviving a quiet IPO market that has been dragged by higher interest rates and an uncertain global economic outlook. Cainiao’s listing plans coincide with similar moves by its rivals including SF Holding Co. and J&T Global. That means banks have to choose which listing candidates they will work for to avoid conflicts of interest.
J&T Global on June 16 filed for its Hong Kong IPO, listing Morgan Stanley, Bank of America Corp. and CICC as its joint sponsors, confirming an earlier Bloomberg News report. The courier company could raise as much as $1 billion in one of the city’s biggest first-time share sales this year, people familiar with the matter have said.
SF Holding, China’s largest express delivery company, is working with Goldman Sachs Group Inc., Huatai Securities Co. and JPMorgan on its Hong Kong second listing that could happen as soon as this year, Bloomberg News reported last month. The share sale may raise $2 billion to $3 billion, according to the people.
Cainiao, which means rookie or amateur in Chinese, promises to deliver packages in China within 24 hours and anywhere else in the world in 72 hours, according to its website. It operates over 300 international routes partnering with more than 3,000 logistics partners.
Alibaba’s logistics unit is targeting a listing as soon as the end of this year, Bloomberg News reported in March. It has a valuation of more than $20 billion, people familiar with the matter had said. The spinoff of Cainiao came as Alibaba unveiled plans to split its $225 billion business into six main units with each exploring fundraising or an IPO at an appropriate time.
In a surprising move to revive growth, the Chinese tech giant on Tuesday said Executive Vice Chairman Joseph Tsai, a longtime confidant of billionaire co-founder Jack Ma, will take over from Daniel Zhang as the chairman of the board. Eddie Wu, now chairman of Alibaba’s core Taobao and Tmall online commerce divisions, will take over as chief executive.
--With assistance from Jane Zhang.
Most Read from Bloomberg Businessweek
The World’s Empty Office Buildings Have Become a Debt Time Bomb
The ‘Extend and Pretend’ Real Estate Strategy Is Running Out of Time
Race-Based Affirmative Action Is Over. Corporate Diversity Could Be Next
US Seizes $12 Million From Estate of Accused Statue Trafficker
The Problem With Fashion’s Sustainability Push: It Doesn’t Make Much Money
©2023 Bloomberg L.P.
