JD Logistics Inc., the supply arm of e-commerce large JD.com Inc., is searching 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 purchasing growth sparked by the coronavirus pandemic.
The warehousing and delivery firm is promoting 609.2 million shares at HK$39.36 to HK$43.36 every, in keeping with assertion printed within the South China Morning Publish. The corporate will begin taking investor orders from Monday and is ready to start buying and selling on Might 28 in Hong Kong. The deal is anticipated to be priced on Might 21, in keeping with the phrases of the IPO obtained by Bloomberg Information.
At $3.4 billion, JD Logistics can be the second-largest IPO within the metropolis this yr, after Kuaishou Know-how’s $6.2 billion itemizing in February. Hong Kong has seen two different blockbuster JD.com-related choices prior 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 up to now this yr, almost seven instances the $3 billion raised in the identical interval in 2020, knowledge compiled by Bloomberg present.
Created in 2007 and arrange as a standalone unit beneath JD.com a decade later, JD Logistics’ networks embody each so-called final mile and longer distance strains, in addition to chilly chain and ponderous merchandise networks, in keeping with 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, in keeping with 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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