(Yicai Global) Nov. 12 -- Alibaba Group Holding plans to up its investment in Babytree Group by subscribing to the upcoming initial public offering for China's biggest parenting website and online community.
Currently the Beijing-based company's fourth-biggest shareholder, Alibaba will participate in the Hong Kong float to prevent the dilution of its 9.9 percent stake, Hong Kong Economic Journal reported. Babytree aims to raise HKD6.24 billion (USD800 million) through the listing, which has been approved for Nov. 22, and will commence a roadshow to promote the float.
Hangzhou-based Alibaba remains optimistic about Babytree's IPO despite the negative trends in the market and difficulties brought by external situations, the report said, adding that it is confident about the platform's long-term business post-listing. The e-commerce giant first made a strategic investment in the firm in June, valuing it at USD2.2 billion.
Founded in 2007, Babytree aims to provide a community for parents to share valuable experience and looking after their children and solving potential issues. User numbers reached 139 million last year.