JD Logistics seeks as much as $3.4 billion in Hong Kong IPO

JD Logistics Inc., the supply arm of e-commerce big Inc., is looking for to lift as a lot as HK$26.4 billion ($3.4 billion) in its Hong Kong preliminary public providing, seizing on China’s on-line buying growth sparked by the coronavirus pandemic.

The warehousing and transport firm is promoting 609.2 million shares at HK$39.36 to HK$43.36 every, based on assertion revealed within the South China Morning Put up. The corporate will begin taking investor orders from Monday and is about to start buying and selling on Might 28 in Hong Kong. The deal is predicted to be priced on Might 21, based on the phrases of the IPO obtained by Bloomberg Information.

At $3.4 billion, JD Logistics could be the second-largest IPO within the metropolis this yr, after Kuaishou Expertise’s $6.2 billion itemizing in February. Hong Kong has seen two different blockbuster choices up to now 12 months, together with on-line health-care unit JD Well being Worldwide Inc.’s $4 billion IPO in December, in addition to its personal second itemizing in June, which raised $4.6 billion.

JD Logistics’ first-time share sale comes as Hong Kong’s market shrugs off issues over inflation. Town has hosted $20.5 billion price of IPOs thus far this yr, practically seven instances the $3 billion raised in the identical interval in 2020, information compiled by Bloomberg present.

Created in 2007 and arrange as a standalone unit beneath a decade later, JD Logistics’ networks embody each so-called final mile and longer distance traces, in addition to chilly chain and ponderous merchandise networks, based on its prospectus. It operated greater than 900 warehouses throughout China as of the top of 2020.

The logistics agency’s income climbed 47% in 2020 to 73.4 billion yuan, the prospectus exhibits. The corporate reported a web lack of 4.1 billion yuan final yr, in comparison with 2.2 billion yuan in 2019. It plans to make use of the proceeds from the IPO to improve and increase its logistics networks, develop superior applied sciences and to increase its buyer base.

JD Logistics has attracted seven cornerstone buyers to its providing, who agreed to subscribe for about $1.53 billion of inventory, based on the phrases.

The cornerstone buyers are:

  • SoftBank Imaginative and prescient Fund $600 million
  • Temasek Holdings Pte about $220 million
  • Blackstone Group Inc. $150 million
  • Tiger World $200 million
  • China Chengtong Holdings Group Ltd. $160 million
  • Matthews Asia $100 million
  • Oaktree Capital $100 million

BofA Securities Inc., Goldman Sachs Group Inc. and Haitong Worldwide Securities Group Ltd. are joint sponsors for the itemizing.

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