Alibaba-backed Best Logistics Technologies is planning an IPO in the U.S. next year, reports The Wall Street Journal, citing sources aware of the situation. In addition to Best Logistics, Foxconn is also said to be prepping for an IPO, possibly as early as January. It is not known how much the companies aim to raise.
Chinese logistics companies hogging the limelight
Earlier this year, the company’s value was estimated at more than $3 billion after it raised $760 million from various new investors. Its investor list includes Fosun International Ltd., SoftBank China Venture Capital, Alibaba’s Cainiao Network and the World Banks’ private sector investment arm, International Finance Corp, according to a company announcement. Alibaba has invested in Best Logistics several times since 2009 and holds about a 22% stake in it worth $256 million, according to its 2016 annual report.
Since it was founded in 2007, Best Logistics has grown at a tremendous rate. The company has its own warehouse and distribution networks in China. As of now, the company operates about 400 distribution centers in China along with three facilities in the U.S. It also has one warehouse in Germany and has expanded aggressively in Australia, Japan and Thailand this year, notes the WSJ. Best Logistics offers both domestic and international delivery service to China’s online shoppers.
Lately, logistic companies in China that are forming the backbone of online retailers there have attracted billion of dollars in investments from investors. This year, ZTO Express Inc. raised $1.4 billion from its New York IPO in October — one of the largest offerings of its kind in the United States, says The WSJ. The stock was listed aggressively at $19.50 but tumbled 15% from the IPO price in the first day of trading.
Alibaba Music expands partnership with BMG
In other Alibaba news, Alibaba Music has extended its partnership with BMG for another 3 years, resulting in access to recordings and copyrights by BMG artists such as Janet Jackson, Kylie Minogue and Black Sabbath. The companies have also agreed to partner on various other projects related to television and film.BMG CEO Hartwig Masuch said they are pleased and satisfied with China’s Alibaba as the company is surely one of the most innovative and customer-focused businesses in the world.
“By deepening our relationship with Alibaba we are not only helping to pioneer the new music business in China, we are delivering new revenue for our artists and songwriters.”
Alibaba owns several music platforms: Xiami, Ali Music and Ali Planet.