JD Logistics To Raise $3.4 Billion In Hong Kong IPO

JD Logistics has rolled out its long-awaited $3.4 billion listing in Hong Kong, set to be the city's biggest initial public offering since the start of 2021, Reuters reported Monday.

The logistics unit of Chinese e-commerce company JD.com will price its shares between $HK39.36 and $HK43.36 apiece, according to the company's filings, seizing on China's massive growth in online shopping spurred by the coronavirus pandemic.

JD Logistics aims to sell 609 million shares, representing a tenth of the company's enlarged share capital. There is an over-allotment option to sell up to 91.4 million more shares if there is a strong demand, The South China Morning Post said.

The warehousing and shipping company posted 22.5 billion yuan ($3.5 billion) in revenue in the first quarter of last year, up 64% from the same period in 2020.

The company's gross profit for the quarter hit 231 million yuan ($35.8 million), down 72% from the same time in 2020.

At $3.4 billion, JD Logistics would be Hong Kong's second-biggest public listing this year, after Kuaishou Technology's $6.2 billion IPO in February.

The city has seen two other blockbuster JD.com-related offerings in the past 12 months, including online healthcare arm JD Health International's $4 billion listing in December, Bloomberg said.

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

JD Logistics' first-time share sale comes as Hong Kong's market brushes off jitters over inflation.

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