Alibaba’s Online Shopping Division Eyes US IPO, Analysts Value Division At $29B-$39B – Alibaba Group Holding (NYSE:BABA)

  • Alibaba Group Holding Limited’s BABA international online shopping unit is exploring a U.S. initial public offering.
  • The business group is in talks with banks that could potentially help prepare for the IPO in 2024, Bloomberg reports citing knowledgeable sources.
  • The Alibaba unit includes major e-commerce brands Lazada and AliExpress.
  • It competes with rivals such as Inc AMZN in markets outside China and is one of six parts that Alibaba proposes to split into
  • Morgan Stanley in March priced “international retail” units, including Lazada and Trendyol, at roughly $29 billion, while a CICC analyst valued the firm’s international division at about $39 billion.
  • In 2023, Alibaba disclosed plans to break up its empire into units, including e-commerce, logistics, and the cloud, with each business potentially exploring fundraising and an IPO.
  • A U.S. listing could help the business formally Alibaba International Digital Commerce Group, or IDCG, attract global investors wary of putting money directly into China.
  • The international unit accounted for 7% of Alibaba’s revenue last fiscal year. Jiang Fan, the former president of Alibaba’s domestic online retail businesses Taobao and Tmall, helms the division.
  •  Alibaba’s logistics arm Cainiao Network Technology Co, and grocery chain Freshippo are preparing with banks for IPOs in Hong Kong.
  • Price Action: BABA shares traded higher by 1.71% at $82.87 on the last check Thursday.

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