Alibaba Group Holding Ltd. said it will spin off Cainiao Smart Logistics Network Ltd., the logistics arm of its e-commerce empire, through an initial public offering in Hong Kong.

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The Cainiao IPO would be among the first of Alibaba’s units to go public after a dramatic breakup of the tech giant unveiled earlier this year. The first-time share sale could raise at least $1 billion, and banks including Citic Securities Co., Citigroup Inc. and JPMorgan Chase & Co. have been working on the deal, Bloomberg News reported earlier.

Alibaba co-founded Cainiao in 2013, using it as the delivery backbone for its Chinese online marketplaces. The unit followed Alibaba’s footsteps into the global e-commerce arena, handling parcels for millions of merchants and brands on platforms like AliExpress and Southeast Asia’s Lazada.

Cainiao, which means rookie or amateur in Chinese, promises to deliver packages in China within 24 hours and anywhere else in the world in 72 hours, according to its website. It operates over 300 international routes partnering with more than 3,000 logistics partners.