Alibaba Shares Soar After Historic Overhaul Heralds IPO Wave (2)

Alibaba Group Holding Ltd.’s US shares closed 14.3% higher after China’s online commerce leader announced plans to split its $220 billion empire into six business units, a major restructuring that promises to yield several initial public offerings.

The move frees up the Chinese company’s main divisions from e-commerce and media to the cloud to operate with far more autonomy, laying the foundation for future spinoffs and market debuts.

The shift to a holding company structure is rare for major Chinese tech firms and could present a template for Alibaba’s peers. Decentralizing the company’s business lines and decision-making power addresses ...