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Freshippo Set To Complete IPO Within 1 Year

May 23, 2023

Recently, Freshippo (also known as Hema Fresh) has signed strategic cooperation agreements with 13 world-renowned retail groups, international brands, global associations and consulting firms in Shanghai. The purpose of these agreements is to expedite Freshippo’s introduction of high-quality overseas products. The fruit companies involved include Zespri from New Zealand, Garces Fruit from Chile and Driscoll’s from the United States.

Since the beginning of this year, Freshippo has already formed partnerships with 33 overseas retailers. In addition, the company has unveiled a blueprint to establish eight procurement centers worldwide, with the aim of sourcing premium products from around the globe.

On the evening of May 18, Alibaba Group, the owner of Freshippo, released its fourth-quarter and full-year financial results for the fiscal year ending March 31, 2023. According to the financial report, Alibaba’s board of directors has given approval to initiate the listing process for Freshippo, which is expected to be completed within the next 6–12 months. If all goes as planned, Freshippo is likely to become the first independently listed subsidiary of Alibaba since the group launched its reform initiative earlier this year.

Industry analysts have speculated that Freshippo may elect to go public on the Hong Kong Stock Exchange, although the fast-growing produce retail chain has declined to comment.

In early 2022, Freshippo considered financing at a valuation of $10 billion. However, this was subsequently decreased to $6 billion because of a stock market slump and capital contraction. Earlier this year, there were rumors that Freshippo’s latest valuation still stood at $6 billion, surpassing the combined market value of the two Hong Kong-listed retail companies Sun Art Retail Group and GOME Retail Holdings Limited.

Image: Freshippo

This article was translated from Chinese. Read the original article.

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