JD.com’s logistics unit is in talks with banks for what may be one of Hong Kong’s most anticipated initial public offers of 2021
- JD Logistics would follow the US$3.5 billion listing of JD Health this week
- JD.com raised US$4.5 billion in a secondary listing in Hong Kong in June
The logistics unit of China’s second-biggest e-commerce platforms has invited investment banks to submit proposals for an initial public offering (IPO) in Hong Kong, becoming the latest arm of JD.com’s stable of companies to tap the stock market for capital.
Multiple banks have submitted proposals to help JD Logistics raise capital, eager to work on what is likely to be one of the largest equity sales in 2021, according to a person familiar with the process, declining to be named. Reuters reported the IPO could raise US$3 billion, although bankers said it’s still too early in the process to put a value on the fundraising.
JD Logistics was created in April 2017 as a separate business unit under JD.com, using the company’s widespread fulfilment network to provide integrated supply chain and logistics services to third party companies, including warehousing, transport, delivery and after sales services. It also provides logistics technology such as cloud-based services and data analytics to third-party clients.
JD Logistics’ prowess was on display during Singles’ Day, the world’s largest shopping extravaganza, when shoppers rang up bills worth a record 271.5 billion yuan (US$41.4 billion) between November 1 and 11 on JD.com. JD Logistics competes with Cainiao, the logistics unit of this newspaper’s owner Alibaba Group Holding.