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

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.

The logistics offshoot of 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 largest listings in Hong Kong this year following the Kuaishou Technology IPO in late January which raised $5.4 billion.

The deal 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.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.

An IPO for the unit has been under consideration for almost a year.

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