Alibaba Scraps Logistics Arm’s IPO After Market Turmoil Worsens

(Bloomberg) — Alibaba Group Holding Ltd. called off an IPO for its Cainiao logistics arm in Hong Kong, shelving a $1 billion-plus deal in a surprise move that underscores its new approach toward rejuvenating a flagging e-commerce empire.

It’s the second time Alibaba has nixed a high-profile debut for one of its main businesses, casting more uncertainty over a restructuring that began last year and has switched tack since the abrupt departure of former CEO Daniel Zhang. From an initial plan of splitting the company into six standalone divisions that could independently raise capital, the objective now is to combine operations to drive the mainstay commerce arm, while selling off non-core assets such as stakes in social media platform Bilibili Inc. and electric-vehicle maker XPeng Inc.