JD.com set to raise US$3.88 billion from Hong Kong secondary listing at HK$226 a share amid rising US-China tensions, sources say
- JD.com to price at 3.9 per cent discount to ADR’s close
- Secondary listing was multiple times oversubscribed
JD.com, one of China’s largest e-commerce sites, looks set to price its secondary listing in Hong Kong at HK$226 a share (US$29.16) after investors clamoured to participate in the offer.
The Beijing-headquartered firm will raise about US$3.88 billion from the share sale, in what is poised to be the largest fundraising so far this year in the city, according to people familiar with the deal, declining to be named for speaking about a matter that is not public.
US-listed JD.com and NetEase are raising funds in Hong Kong amid rising US-China tension. US politicians are dialling-up their demands to fence off Wall Street from Chinese companies.
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Trump administration bans Chinese passenger airlines from flying to US destinations
The US Senate unanimously approved a bill to audit Chinese-American depositary receipt (ADR) listings and stock analysts believe Sino-US financial links will fray further ahead of the 2020 US presidential election. To widen their funding options, some Chinese ADR companies are pursuing secondary listings in Hong Kong.