Chinese firm JD Logistics to raise $ 3.2 billion in Hong Kong IPO – fr

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Chinese firm JD Logistics to raise $ 3.2 billion in Hong Kong IPO – fr


Workers at Chinese e-commerce giant JD.com prepare packages for delivery to the company’s main logistics center for Singles Day on November 11, 2020 in Beijing, China.
Kevin Frayer | Getty Images News | Getty Images
GUANGZHOU, China – The logistics arm of Chinese e-commerce giant JD.com is expected to price its Hong Kong IPO at HK $ 40.36, near the bottom of the range, a person told CNBC knowing the subject.
JD Logistics previously said its IPO on the Hong Kong Stock Exchange would be valued between HK $ 39.36 and HK $ 43.36.

The company will issue 609.2 million shares. At HK $ 40.36 each, the company is said to be raising HK $ 24.6 billion ($ 3.2 billion).

Pricing is subject to confirmation, said the person, who declined to be identified as he was not authorized to speak publicly.

JD declined to comment when contacted by CNBC.

JD.com, an Alibaba rival in China, has been very active in the financial markets. JD.com, which is listed in the United States, made a secondary listing of $ 3.87 billion in Hong Kong last June. The company then listed its healthcare unit in Hong Kong in December.

However, JD pulled the planned listing for its fintech arm, JD Technology, from the Nasdaq-style STAR marketplace in Shanghai last month.

JD has invested in its logistics in order to differentiate itself in the fierce e-commerce market in China. The company is focusing on same day and next day deliveries and investing in automated logistics warehouses.
In 2020, JD Logistics achieved sales of 73.4 billion yuan ($ 11.4 billion), an increase of 47% year-over-year. However, the company reported a loss of 4 billion yuan in 2020, more than the 2.2 billion loss in the previous year.

Additionally, in 2020 over 50% of JD Logistics’ revenue came from JD Group and other affiliates – a risk the company pointed out in its IPO prospectus.

“A significant portion of our revenues was associated with JD Group during the reporting period and we expect that a significant portion of our revenues will continue to be associated with JD Group for the foreseeable future,” he said.

“We may have different development prospects or conflicts of interest with JD Group and, due to JD Group’s majority stake in our company, we may not be able to resolve these conflicts on terms favorable to us. . “

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