Alibaba Halts Talks to Raise $1 Billion Before Lazada IPO

  • Southeast Asia unit explored becoming separately listed firm
  • Lazada targeting $100 billion in gross merchandise value
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Alibaba Group Holding Ltd. discussed raising at least $1 billion for Lazada before calling off negotiations with potential investors when talks bogged down over the Southeast Asian online mall’s valuation.

The Chinese e-commerce giant had aimed to secure financing for Lazada as a precursor to a spinoff of the Singapore-based company and a potential initial public offering, people familiar with the matter said. Alibaba had hoped to snag at least $1 billion but backed off after failing to secure its envisioned valuation, the people said, asking not to be identified discussing confidential deliberations.