Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

JD Logistics launches Hong Kong IPO to raise up to $3.4 billion - filings

Stock MarketsMay 16, 2021 08:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A staff member wearing a face mask works at JD.com's automated logistics center during a government organized tour on China's Singles Day shopping festival in Beijing, China November 11, 2020. REUTERS/Thomas Peter/File Photo

By Scott Murdoch

(Reuters) -JD Logistics will price its shares between $HK39.36 and $HK43.36 each as the company aims to raise up to $3.4 billion, according to the company's filings, in one of Hong Kong's largest share sales in 2021.

The logistics offshoot of JD (NASDAQ:JD).com Inc will sell 609.1 million shares in the deal which is 10% of the company's total shares, the filings said.

An over-allotment option, or so-called greenshoe, exists to sell a further 91 million shares that would raise up to a further $510 million.

At that size, JD Logistics will be one of the biggest deals in Hong Kong this year following the Kuaishou Technology IPO in late January which raised $5.4 billion.

The company recorded 22.4 billion yuan ($3.5 billion) in revenue in the first quarter of 2021, up 64.1% from the same period in 2020.

Its gross profit for the quarter reached 230.7 million yuan ($35.8 million), down 72.7% from the same time last year, which it blamed on the pandemic impact and adding 60,000 workers to its headcount during the year.

In its prospectus, JD Logistics said it expected an insignificant impact on its business from the Chinese government's tighter anti-monopoly regulations of internet platform businesses.

The company, it said, controls 2.7% of the integrated supply chain logistics market.

JD Logistics' IPO is expected by analysts to be a barometer of investor appetite towards major share sales following volatility in global equities markets over the past week, led by concerns inflation is starting to emerge around the world.

JD Logistics will be valued at $34 billion at the top of the price range and seven high profile cornerstone shareholders led by SoftBank Group Corp's Vision Fund and Temasek have taken shares worth up to $1.53 billion, or 45% of the IPO, according to the filings.

The final price will be set on Friday and the stock will start trading on the Hong Kong Stock Exchange on May 28.

JD Logistics said 55% of the funds raised would be spent on upgrading its logistics network in the next 12 to 36 months, while a further 20% would go towards technology development.

JD.com spun off its logistics unit into a standalone entity in 2017 and then opened up its delivery and warehousing services to third-party companies.

JD.com carried out a Hong Kong secondary listing in June last year which raised $3.87 billion.

($1 = 6.4367 Chinese yuan renminbi)

JD Logistics launches Hong Kong IPO to raise up to $3.4 billion - filings
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email