Alibaba-backed Huitongda Networks Co., is consulting advisers in a potential listing in Hongkong, according to Bloomberg. The e-Commerce firm could raise about $1 billion in the IPO that could be floated in the second half of the year.
Discussions of the planned IPO are ongoing and the details could change.
Huitongda, which empowers rural entities in China with new technology and supply chain, has presence in 21 provinces and at least 19,000 villages and towns.
The IPO comes when online commerce has risen in China with major players such as JD.com and Alibaba finding it difficult to reach rural areas.
Alibaba has in the past sought to expand in lower-tier locations and invested 4.5 million Yuan or $701 million in Huitongda in 2018.
China’s president Xi Jinping has focused on economic development in low-tier areas where about 36% of Chinese population lies.
Huitongda had previously sought Huaxing Securities for a listing on Shenzhen’s ChiNext board.
IPOs have generated about $20.5 billion in Hong Kong this year, up at least 6 times from 2020.
