JD Logistics kicks off marketing as it seeks up to US$3.4 billion in Hong Kong initial public offering

Name: Intelligent sorting systems help China's JD.com cope with demand during Covid-19 pandemic
Uploaded: 2021-05-17T01:32:57.000Z
Duration: 2 min 20 s
Description: Intelligent sorting systems help China's JD.com cope with demand during Covid-19 pandemic

Logistics arm of JD.com expects to price its IPO between HK$39.96 and HK43.36 a share

Cornerstone investors include Softbank, Singapore sovereign wealth fund Temasek, Blackstone and Tiger Global Management

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Workers sort out packages at JD's Yizhuang Smart Delivery Station in Beijing. JD Logistics’ IPO is expected to be the second-biggest offering in Hong Kong this year. Photo: Simon Song

Georgina Lee

Published: 9:32am, 17 May 2021Updated: 10:37pm, 17 May 2021

The logistics arm of Chinese e-commerce giant JD.com started marketing its Hong Kong initial public offering (IPO) to retail investors on Monday at a price range of HK$39.36 to HK$43.36 per share, which could see the firm raise as much as HK$26.4 billion (US$3.4 billion) if the deal is priced at the top end.

JD Logistics plans to sell 609.2 million shares, representing 10 per cent of its enlarged share capital. There is an over-allotment option to sell up to 91.4 million more shares if there is a strong demand.

JD Logistics’ offering is expected to be the second multibillion-dollar IPO on the Hong Kong bourse this year, after Tencent-backed short video platform Kuaishou Technology raised US$6.2 billion in January. The Kuaishou offering was the biggest IPO globally so far this year.

Eight cornerstone investors have committed to buy a total of US$1.5 billion worth of JD Logistics shares, which would account for about 39 per cent of its global offering if the deal is priced at the top end.

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Intelligent sorting systems help China's JD.com cope with demand during Covid-19 pandemic

The investors include Softbank, Singapore sovereign wealth fund Temasek Holdings, China Structural Reform Fund and asset managers such as Blackstone, Tiger Global Management and others.