Benzinga | May 18, 2021 05:38PM EDT

Alibaba-Backed E-commerce Platform Huitongda Network Eyes $1B Hong Kong IPO: Bloomberg

* Alibaba Group Holding Ltd (NYSE: BABA)-backed Chinese e-commerce platform, Huitongda Network Co, is seeking to raise almost $1 billion from a Hong Kong initial public offering (IPO) by as early as the second half of 2021 to tap the pandemic induced e-commerce boom, Bloomberg reports.

* Huitongda vests rural retailers with supply chain and digital technology.

* Around 36% of China's 1.4 billion population reside in rural areas.

* Alibaba has been vocal about lower-tier area expansion to lift small merchants and drive rural consumption.

* Alibaba had invested $701 million (4.5 billion yuan) in Huitongda in 2018.

* Alibaba and JD.com Inc (NASDAQ: JD) have struggled to expand to the rural areas of China.

* Price action: BABA shares closed higher by 1.27% at $213.72 on Tuesday.