According to Bloomberg, Chinese tech giants - two JD subsidiaries and Cainiao Network Technology, Alibaba’s logistics arm - filed for IPOs on Hong Kong’s stock exchange. These listings may raise about $5 billion, people familiar with the matter said. Recently, Alibaba has unveiled a six-way split into separate firms that will be able to attract funds. Cainiao Network Technology can become the first Alibaba subsidiary to be listed in Hong Kong. JD.com’s Jingdong Property and Jingdong Industrials are the leading firms in their industry. Jingdong Property provides services for industrial infrastructure development and asset management and Jingdong Industrials specializes in industrial product supply and related technology and services. “For the big techs, spinoffs no doubt can boost shareholder return, unlock the company value and ease regulatory concerns related to anti-trust,” Willer Chen, senior research analyst at Forsyth Barr Asia, said. “For more than a year or so, there has been very light demand on the deal side as market conditions were weak and investors disheartened. Now, the environment seems more friendly for valuation, which makes sense for big tech subsidiaries,” the analyst added.
