Tuesday, Jan 31, 2023
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JD Logistics to raise $5 bn in Hong Kong listing

JD Logistics Hong Kong_IFM_Image
The company could be valued at around $40 bn

JD Logistics, the logistics unit of Chinese ecommerce giant JD.com is planning, to list its shares in the Hong Kong Stock Exchange, media reports said. The listing could see the company raise around $5 billion and the company could be valued at $40 billion.

In a filing, JD Logistics said that it will remain a majority shareholder and will realize value from the business in the listing. Currently, JD.com holds just over 79 percent share in the company. Details of the listing have not been finalized as of yet.

In December, JD Health, the healthcare unit of JD.com, raised around $3.9 billion by selling its shares on the Hong Kong Stock Exchange. The company picked Bank of America and UBS Group as advisers. JD Health’s parent company JD.com raised $4.5 billion in its Hong Kong IPO.

During the same period, it was reported that JD Logistics has had early talks with banks to raise between $8 billion and $10 billion in a potential initial public offering overseas.

In August last year, it was reported that JD Logistics was set to acquire a controlling stake in another China-based logistics company Kuayue Express for around $432 million. According to reports in the media, JD Logistics had already signed an agreement with Kuayue Express.

JD Logistics revealed in a filing with the Hong Kong Stock Exchange that it will acquire existing shares and also subscribe to newly-issued shares of Kuayue Express. The transaction was expected to be completed in the third quarter of 2020.

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