Alibaba is planning an initial public offering for its logistics unit Cainiao

Alibaba plans to list its logistics unit Cainiao on the Hong Kong Stock Exchange, the Chinese e-commerce giant said in a regulatory filing on Tuesday.

Alibaba will continue to hold more than 50% of Cainiao’s shares after the split.

The move is part of one of the most radical changes in Alibaba’s history. In March, the company said it would split its structure into six business units, most of which will be able to raise external funds and go public.

Cainiao is the first of these companies to formally file for an initial public offering (IPO). Alibaba said there was “no guarantee” that the proposed spin-off would occur.

Alibaba said the Hong Kong Stock Exchange has confirmed that Cainiao’s listing may go ahead. The stock exchange declined to comment on the individual listings.

Details about the pricing of the shares or the expected listing date have not yet emerged.

Founded in 2013, Cainiao is a logistics network that helps Alibaba fulfill deliveries made on its e-commerce platforms both in China and abroad. Alibaba aims to fulfill consumer orders within 24 hours in China and within 72 hours anywhere else in the world.

The company acquired a majority stake in Cainiao in 2017 and owns nearly 70% as of Tuesday.

Delivery speed is a point of competition among Chinese e-commerce companies. Alibaba’s rival, JD.com, has focused on same-day delivery to boost its platform’s appeal among Chinese shoppers.

Alibaba said the IPO will enhance Cainiao’s “independent image among its customers, suppliers and potential strategic partners, which will help Cainiao be in a better position to negotiate and solicit more business.”

The Chinese giant added that the listing “will lead to a more direct alignment of management responsibilities and accountability” for both Alibaba and Cainiao with their operational and financial performance.

Cainiao’s IPO plans come after Alibaba announced a major reshuffle in June, when former CEO Daniel Zhang stepped down and was replaced by Eddie Wu. Then Zhang, who retained leadership of the cloud computing unit, made a surprise move this month to exit that business. Wu took over the position of head of Alibaba’s cloud division.

In addition to Cainiao, Alibaba is also looking to list its cloud computing business, although it has not formally applied for a spinoff.