Alibaba calls off $1 billion IPO for Cainiao amid market slump

livemint.com:

initial public offering for its Cainiao logistics arm, shelving a much-anticipated debut that could have raised more than $1 billion. China’s e-commerce pioneer decided to postpone the transaction because of poor market conditions, people familiar with the matter said. It lost its taste for the deal this year as stocks waned, the people said, asking to remain anonymous discussing a private matter.

Alibaba could choose to revive the IPO should markets recover, they added. It’s the second time Alibaba has nixed a high-profile coming-out party for one of its main businesses. In 2023, the Chinese internet firm stunned the market when it called off a listing of its $11 billion cloud unit.

Cainiao Smart Logistics Network Ltd., which handles a major chunk of the millions of parcels that Alibaba’s e-commerce business generates daily, was considered one of its fastest-growing enterprises. Last year, Alibaba also put plans to debut its Freshippo grocery chain on the back burner. Its retreat coincides with growing uncertainty in public markets as Beijing grapples with a property crisis, loss of foreign investor confidence and the resultant economic downturn.

At the same time, domestically oriented businesses are struggling to grow their topline because of waning consumer confidence. Alibaba is still grappling with fundamental questions surrounding the once-dominant internet company — a barometer of Chinese demand. Its performance underscored a loss of market share to rivals such as PDD and ByteDance Ltd.