September 26, 2023 at 5:29 AM EDT

Updated on

September 26, 2023 at 6:09 AM EDT

Alibaba Group Holding Ltd. said it will spin off Cainiao Smart Logistics Network Ltd., the logistics arm of its ecommerce empire, through an initial public offering in Hong Kong.

The Hong Kong exchange confirmed that the company can proceed with its proposed Cainiao spinoff and IPO, according to a filing Tuesday. Alibaba will continue to hold more than 50% of the unit’s shares, and Cainiao will remain a subsidiary of the company, the filing shows.

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Alibaba to Spin Off Cainiao Logistics Unit for Hong Kong IPO