Alibaba to split biz into 6 units, plans new IPOs in big overhaul

SHARES SURGE AS MUCH AS 13% POST ANNOUNCEMENT

- JOSH HORWITZ

ALIBABA GROUP PLANS to split into six units and explore fundraisings or listings for most of them, it said on Tuesday, in a major revamp as China vows to ease a sweeping regulatory crackdown and support its private enterprises.

The US-listed shares of the Chinese e-commerce conglomerate, which have lost nearly 70% of their value since the curbs started in late 2020, rose nearly 9% in early trading.

Alibaba said the biggest restructuring in its 24-year history would see it split into six units Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Cainiao Smart Logistics Group, Global Digital Commerce Group and Digital Media and Entertainment Group.

The revamp comes a day after its founder Jack Ma returned home, ending a year-long stay abroad and as Beijing looks to spur private sector growth after a two-year-long crackdown on its showpiece private enterprises.