Alibaba scraps planned IPO of Cainiao logistics unit as it doubles down on e-commerce

Alibaba Group Holding on Tuesday said it had scrapped plans to list its logistics unit Cainiao in Hong Kong, as it looks to prioritize growing its e-commerce business while facing challenging IPO market conditions. Alibaba said Tuesday that it was withdrawing its IPO and listing application, and instead had proposed to purchase all outstanding shares of Cainiao Smart Logistics Network. The repurchase offer will value Cainiao at $10.3 billion. Alibaba currently holds a stake of 64% in the logistics unit, and the buyout offer will allow minority shareholders to sell their shares to Alibaba. The company also said that current market conditions would “unlikely garner a valuation” that reflects Cainiao’s strategic value to Alibaba’s business.