Official response: Alibaba's international e-commerce division has no plans for a US IPO

According to a Bloomberg report on May 4, people familiar with the matter said that Alibaba's international e-commerce division is considering an IPO in the United States. It is currently in the early stages of consideration and the size of the IPO has not yet been determined. However, Alibaba officials responded that there are currently no IPO plans.

The report cited people familiar with the matter as saying that Alibaba's international e-commerce unit is in talks with banks, which could help prepare for an IPO next year.

In March this year, Alibaba carried out a large-scale reorganization, dividing its business into six departments. The overseas e-commerce business was divided into the Global Digital Commerce Department, which has a separate CEO and board of directors for independent management and is able to raise external funds for an independent IPO.

l learned that the Global Digital Business Group mainly includes Singapore-based e-commerce platform Lazada, cross-border e-commerce platform AliExpress, Turkey-based e-retailer Trendyol, Pakistan's largest e-commerce retail platform Daraz and wholesale service platform Alibaba.com.

Splitting the business would ease scrutiny of Alibaba at home, and Alibaba’s international commerce unit would join a number of high-profile Chinese companies, including fast-fashion leader Shein, seeking to tap U.S. capital amid heightened tensions between the U.S. and China.

If Alibaba's international commerce unit is able to go public in the United States, the unit would likely be formally renamed Alibaba International Digital Commerce Group (IDCG), which would attract global investors who are wary of plowing money directly into China.

Valuations of Alibaba’s international business units vary. Morgan Stanley priced the “international retail” unit, which includes Lazada and Trendyol, at about $29 billion (HK$226.2 billion) in March, while an analyst report from CICC the same month valued the company’s international unit at about $39 billion. However, growth has been shaky in recent quarters in the face of concerns about a global recession.

Editor✎ Ashley/

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