Alibaba Group Holding Ltd’s cloud division is weighing a private round to raise funds from Chinese state-owned enterprises ahead of the business’ market debut in Hong Kong, Bloomberg News reported on Monday.

Alibaba misses revenue estimate, approves cloud unit spinoff

The tech giant is working with advisers on a potential Cloud Intelligence Unit fundraising that could mop up about 10-20 billion yuan ($1.38-$2.75 billion), the report said, citing people with knowledge of the matter.