IPOS - Alibaba Chairman Says 'Not In A Hurry' For Cainiao Freshippo IPOs Due To 'Challenging Market Conditions | Benzinga
Alibaba Group Holding Ltd (NYSE:BABA) has decided to put the initial public offerings (IPOs) of its logistics arm Cainiao Smart Logistics and brick-and-mortar chain Freshippo on hold due to challenging market conditions.
What Happened: Alibaba’s Chairman Joe Tsai announced the decision during an earnings call on Wednesday, citing unfavorable market conditions as the primary reason for the delay.
“Market conditions currently are just not in a state where we believe we can really truly reflect value, the intrinsic value of these businesses,” Tsai said.
“Having said that, we continue to explore value creation through separate financings of large business units,” Tsai said.
“But given the challenging market conditions, as I said, we’re not in a hurry on the timing of these transactions.”
Alibaba’s Cainiao Smart Logistics Network Ltd. had previously filed for its Hong Kong IPO in September, with the first-time share sale expected to raise a minimum of $1 billion. However, the Chinese securities regulator requested additional financial and asset information in November.
Freshippo, on the other hand, began preparing for ...