Alibaba will spin off its logistics unit, Cainiao Smart Logistics Network (Cainiao), in a Hong Kong IPO, making it the first unit of the Chinese e-commerce company to go public following a major restructuring.

Cainiao submitted its A1 filing to the Hong Kong Stock Exchange on September 26.

The company plans to raise at least US$1 billion, subject to market conditions. Upon completion of the proposed spin-off, Alibaba will maintain over 50% ownership of Cainiao as a subsidiary.

The move comes after Alibaba announced about six months ago that it would reorganize into six business groups and other investments in a bid to boost market competitiveness in what could be the Chinese multinational technology company's biggest restructuring in its 24-year history.

Aside from Cainiao, the other units are Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Global Digital Commerce Group, and Digital Media and Entertainment Group.

Daniel Zhang, former chairman and CEO of Alibaba, has said Cainiao has "over the years established differentiated customer value propositions, stable and well-defined business models and a clear path to profitability."

Zhang said then that Cainiao is "ready to go public."

Zhang stepped down as CEO to lead Alibaba's cloud division and has left his position at Alibaba Cloud to start a new investment fund backed by Alibaba.

Eddie Wu then took over the reins earlier this month.