Hong Kong-listed shares of Alibaba Group Holding Ltd BABA crossed the HKD 100 mark on the upside for the first time since Feb. 21, as investors and traders continued to digest a report that said the company’s logistics unit is preparing for an IPO.
Price Action: Alibaba shares nudged the HKD 102-mark before cooling off as market participants appeared to take some profits off the table. The stock is already up over 16% in last five days after the company announced a mega overhaul. At the time of writing, the stock was trading up over 3%.
Also Read: How to Buy Alibaba (BABA) Stock
Alibaba’s logistics arm, Cainiao Network Technology has reportedly commenced preparations with banks for its Hong Kong initial public offering. Cainiao, working alongside banks such as China International Capital and Citigroup, is looking for a listing as early as the end of 2023. The firm has yet to determine the size of the IPO, however, the company is currently valued at $20 billion.
Alibaba had earlier announced plans to split into six separate entities as it seeks better efficiency with its operations. The company plans to explore fundraising or listings for most of its units.
Crucial Levels: Alibaba's daily chart shows the Hong Kong-listed stock may witness some resistance at levels close to HKD 118 while the HKD 97 level may likely provide some support.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
