JD.com, the second biggest and most successful online retailer in China next to Alibaba, is reportedly aiming to collect up to HK$31.4 billion ($4.05 billion) in the Hong Kong Stock Exchange listing to add more muscle to its NASDAQ listing.
Many American-listed Chinese firms are looking into a local listing in the face of animosity in relations between Beijing and Washington.
The US House of Representatives has passed a legislation that would grant permission to US-listed Chinese business groups to have their audits evaluated by American commerce regulators and to report whether they are controlled by the government. The legislation is seen to become a law.
JD is offering 133 million new shares valued at around HK$236 each, based on conditions of the agreement obtained by Bloomberg News. The maximum value represents a 7.7 percent premium to JD's closing price in New York on Thursday.
JD's much-anticipated share sale is poised to be the biggest in Hong Kong for 2020, coming big in the wake of NetEase's $2.7 billion public bid in the bustling financial metropolis.
The online retail empire, compared by many to a cross between Amazon and eBay, would secure around $3.8 billion based on its last closing price in its US-listed shares, documents seen by the Times, showed. That figure could soar to about $4.3 billion if investors execute an option to hike the allocation to meet demand.
JD is estimated to be listed in Hong Kong on June 18, which is the same day that the group, Apple's official Chinese reseller, will conduct its important online shopping event called 6.18, by reducing prices of its smartphones, PYMNTS disclosed.
The Chinese online retail giant plans to use the capital for supply-chain technology ventures. Rival Alibaba initiated a $13 billion stock offering on Hong Kong's stock exchange in 2019.
The company's stock has moved up by 31 percent in the past few weeks, while the reseller is also above its 20-day SMA as well. This mixture of solid price performance and highly favorable technical, may indicate that JD's stock could be treading on the right course.
JD's Hong Kong share offering represents around 4.4 percent of the company's total shares outstanding prior to an over-allotment option. The firm is taking orders from institutional investors from Friday and launch its retail investor subscription on June 8, according to the share terms.
Meanwhile, Zacks Ranking has placed JD on its No. 1 rank -- a Strong Buy -- which means that its recent impressive performance may continue for a bit longer.
