Chinese giant Alibaba’s (NYSE: BABA) logistics unit, Cainiao Network Technology Co., is planning an initial public offering (IPO) early next week, according to a Bloomberg report. This could be the first of Alibaba’s businesses to go public. Cainiao plans to raise $1 billion through the IPO and has been in discussions with banks, including Citic Securities, Citigroup (C), and JPMorgan Chase (JPM).
It was also reported earlier this month that Alibaba is delaying the IPO of its Freshippo grocery chain due to weak market sentiment for consumer stocks in China and will wait for a “more favorable market.”
Separately, Chinese stocks, including BABA, JD.com (JD), and Baidu (BIDU), got a further boost on Friday after another Bloomberg report noted that China is considering tweaking its policies to boost foreign ownership in stocks listed in Shanghai, Shenzhen, and Beijing. China currently limits total foreign ownership in domestically listed companies to 30%.
Is Alibaba a Good Stock to Buy Now?
Overall, analysts remain bullish on BABA stock with a Strong Buy consensus rating based on 15 Buys and one Hold.