The listing could raise as much as $20 billion, sources said last month, smaller than its record $25 billion float in New York five years ago.
That makes the share sale one of the largest of all time globally, just shy of the record $25 billion that Chinese e-commerce firm Alibaba Group Holding Ltd (BABA.N) raised in 2014.
Currently, Alibaba owns a 49 percent stake in the firm.
Babytree will sell shares in the initial public offering (IPO) at HK$6.80 each - the low end of a range that reached HK$8.80 - to raise $217 million, instead of up to the $1 billion initially targeted.
The Alibaba founder and CEO, who was in Jakarta for the 2018 Asian Games, was named an e-commerce adviser to the Indonesian government in 2017.
Starbucks flagged in June that it was pursuing such a tie-up after reporting a sudden slowdown in China sales growth.
Alibaba will acquire about 6.62 percent in Focus Media for 9.63 billion yuan ($1.43 billion) and possibly another 5.0 percent stake in the next 12 months, it said in a statement.
Warburg Pincus is looking to become a key investor in the round, one of the people said.
Ele.me will continue to operate under its own brand following the acquisition, said Alibaba, but will combine some functionalities with Koubei.
Alibaba Group Holding Ltd’s entertainment arm has signed a licensing agreement with Walt Disney Co .
Dalian Wanda Group is selling a $1.24 billion stake in its listed film business to a pair of investors led by Alibaba Group Holding Ltd (BABA.N).
It has no physical branches or expensive foreign software, and uses cloud technology to cut back on the hardware it needs to serve borrowers.
Alibaba (BABA.N), the Chinese e-commerce giant, said on Saturday its Singles’ Day sales extravaganza hit $25.4 billion.
Alibaba Group is launching a $15 billion drive to build overseas research hubs as the deep-pocketed firm looks to compete with global leaders in e-commerce