JD Logistics set to raise US$3.2 billion in Hong Kong IPO in city’s second-biggest fundraising so far this year

The logistics unit of JD.com will raise US$3.2 billion, after indicating Hong Kong IPO offer price at HK$40.36 per share

JD Logistics is expected to issue 609.2 million shares in its global offering

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A JD Logistics delivery driver on the streets of Beijing in February. The company is set to raise US$3.2 billion in its Hong Kong IPO. Photo: Minghe Hu

Published: 12:53pm, 21 May 2021Updated: 11:04pm, 21 May 2021

JD Logistics indicated on Friday it will price its Hong Kong initial public offering at HK$40.36, which will help the company raise HK$24.6 billion (US$3.2 billion) in the city’s second-biggest deal so far this year, according to a person familiar with the matter.

The final offer price is near the bottom end of the range marketed to investors of HK$39.36 to HK$43.36 per share.

JD Logistics plans to issue 609.2 million shares in its global offering, the bulk of which are slated for institutional investors. There is an overallotment option to sell up to 91.4 million more shares if there is strong enough demand. Listing on the Hong Kong stock exchange is scheduled for May 28.

Investors will be on tenterhooks ahead of JD Logistics’ debut after SF Real Estate Investment Trust, an investment vehicle owned by China’s largest courier provider, S.F Holding, dropped 16 per cent on its first day of trading.

Yu Rui, the 38-year-old CEO of JD Logistics. Photo: Handout

The share sale by the logistics unit of the Chinese e-commerce giant JD.com comes as the rush of IPOs this year slows down.

Only four IPOs completed over the past six weeks, data from Refinitiv shows, in stark contrast to the busy month of January, when 15 IPOs completed. The Hang Seng Index rose past the 30,000-level in a 21-month high in January.