CAINIAO Network Technology, the logistics arm of Alibaba Group, is planning to file for its Hong Kong initial public offering (IPO) as soon as next week, said people familiar with the matter, potentially making it among the first of the Chinese tech firm’s units to go public.

The company is targeting to raise at least US$1 billion in the share sale, though it is still early to decide on the valuation, said the sources, who asked not to be identified as the information is private. No final decision has been made and details could still change, they said. 

A representative for Cainiao declined to comment, while a representative for Alibaba referred the Bloomberg News query back to Cainiao.

An application could put Cainiao ahead of Alibaba’s other units on the path to separate listings, following the parent’s surprise announcement in March that it would split up the business. The logistics unit has been working with banks, including Citic Securities, Citigroup and JPMorgan Chase on the IPO, Bloomberg News reported earlier this year.

China International Capital dropped out because of conflicts of interests; it is serving as a joint sponsor of J&T Global Express, another logistics firm that is seeking Hong Kong listing approval next week, people familiar with the matter said.

Separately, Alibaba is putting the Hong Kong IPO of its Freshippo grocery chain on the backburner amid weak sentiment for consumer stocks in China.

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The capital management committee of Alibaba, which is overseeing the breakup of the sprawling company, recently decided to wait for a more favourable market before moving forward with a Freshippo IPO and will prioritise the listings of other units, Bloomberg News reported earlier this month.

Cainiao, which means rookie or amateur in Chinese, promises to deliver packages in China within 24 hours and anywhere else in the world in 72 hours, said its website. It operates over 300 international routes, partnering more than 3,000 logistics partners. BLOOMBERG