JD Logistics, the delivery unit of China’s ecommerce group JD.com, will seek to raise up to $ 3.4bn in what will be one of the largest initial public offerings in Hong Kong this year.
The company’s decision to list follows a strong online shopping spree during the coronavirus pandemic. But the a more difficult environment to control for Chinese technology groups and a fall in part SF Holding, one of JD Logistics ’biggest competitors, pushed the company’s proposed IPO price by about a quarter, according to someone close to agreement.
JD Logistics will sell 609.2m divided by HK $ 39.36-HK $ 43.36 ($ 5.07- $ 5.58) each. The final price is set on Friday and the shares are expected to start trading on May 28, in line with the terms of the deal seen by the Financial Times.
The IPO is going to be the second largest in the town this year Kuaishou, a Chinese viral video app, raised $ 5.4bn in February, and became JD.com’s third blockbuster listing in Hong Kong last year. JD Health, which sells medical and healthcare services online, has completed a $ 4bn IPO in December and JD.com carries its own second list in the territory in June, raising the same amount.
Hong Kong has benefited from a flood of high-profile listings of Chinese technology companies in recent months and is hosting more than $ 20bn in IPOs this year, according to data from Bloomberg.
JD.com created the logistics and delivery arm in 2007 and it launched its own unit a decade ago. The company operates more than 900 warehouses in China and provides services and delivery services to third parties.
But the group is one of those under pressure as China expands its scrutiny of the largest internet groups. Last month, officials told 13 of the nation’s largest technology companies, including fintech subsidiaries JD.com, Tencent and ByteDance, that “Fix the famous problems” on their platforms. The push was seen as a sign that the focus on sector management has spread beyond Jack Ma’s Ant Group, after the fintech company’s $ 37bn IPO was swallowed up in November.
Separately, shares in SF Holding, China’s largest listed delivery company, fell sharply last month after a three -year loss that upset investors and prompted a review of high valuations. placed by Chinese companies.
Cornerstone investors in the JD Logistics IPO, including technology fund SoftBank’s Vision Fund, Temasek Holdings, Singapore state-backed investment firm, and investor firms Tiger Global and Blackstone subscribed for nearly $ 1.5bn in shares, according to the terms of the deal.
Bank of America, Goldman Sachs and Haitong International are the co -sponsors for the list.
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