According to Bloomberg, Alibaba Group Holdings Limited’s international e-commerce department is planning an initial public offering in the United States, and the company is weighing various options to stimulate business growth, including its main e-commerce platform Lazada and Global AliExpress. According to people familiar with the matter, the company is in the early stages of preparation and the size of the IPO has not been determined yet. It is also reported that the company is in negotiations with banks that may help them prepare for listing next year. Alibaba’s US listed stocks rose 1.2% in New York trading.
The international e-commerce department is one of the six divisions after Alibaba’s split, and valuations vary across different platforms. Morgan Stanley’s valuation for departments including Lazada and Trendyol in March was approximately $29 billion, while an analyst report from CICC in the same month estimated the company’s valuation for this department to be approximately $39 billion. To be listed in the United States, the department was officially named Alibaba International Digital Commerce Group (IDCG). IDCG includes Lazada, which focuses on the Southeast Asian market; The popular global AliExpress in Russia, Latin America, and parts of Europe; Trendyol in Türkiye; Daraz in South Asia and Alibaba.com, where sellers communicate with each other. In the last three months of 2022, the combined orders of Lazada, AliExpress, Trendyol, and Daraz increased by 3% compared to the same period last year. This international department had revenue of approximately $9.5 billion in the previous fiscal year, accounting for 7% of Alibaba’s revenue.
Industry insiders say that the discussions surrounding the IPO are still in the preliminary stage and the situation may change. IDCG said in response to Bloomberg’s inquiry that there are currently no IPO plans.
Post time: May-17-2023