Chinese e-commerce titan Alibaba is withdrawing a planned initial public offering for its logistics arm Cainiao, the company said Tuesday, as a major company overhaul faces setbacks.

The leading tech firm faces fierce competition from rivals such as JD.com, Pinduoduo and Douyin, China's version of video app TikTok.

Cainiao has "withdrawn its initial public offering and listing application on the Hong Kong Stock Exchange," Alibaba Group said in a filing on Tuesday.

The group, which currently owns 63.7 percent of shares in Cainiao, will instead offer to buy back the remaining equity held by minority shareholders, for a total of $3.75 billion.

Alibaba said on Tuesday it had called off the listing, announced in September last year, to "support Cainiao to execute a long-term strategic expansion of its global logistics network".

The decision comes after Alibaba announced in November the cancellation of a planned spin-off of its cloud computing business -- also part of its company restructuring programme.

A pioneer in Chinese online shopping, the group is listed in New York and Hong Kong.

Based in eastern China's Hangzhou, Alibaba is a key player in the country's digital sector and is considered a barometer of consumer spending in the world's second-largest economy.

The company published disappointing quarterly results last month, recording a 77 percent drop on-year of its net profit in the quarter ending December 31.