(Reuters) – Alibaba (NYSE:BABA) Group’s logistics arm Cainiao plans a Hong Kong initial public offering that would make it as the first unit to be spun-off since the Chinese e-commerce group announced its restructuring six months ago.

Alibaba said on Tuesday it had submitted a spin-off proposal for Cainiao Smart Logistics Network to the Hong Kong stock exchange, but said financial terms such as the size of the offering had not been finalised.

However, Alibaba, which holds a 69.54% stake in Cainiao, will continue to hold more than 50% of shares in Cainiao and remain a subsidiary of the company after the spin-off, it added.

Reuters reported in May that Cainiao aimed to raise between $1 billion and $2 billion. In late March, Alibaba said it would split its business into six units, most of which would explore capital increases or market debuts to help fund growth.