JD Logistics, the logistics arm of Chinese e-commerce giant JD.com has made its debut on the Hong Kong Stock Exchange and the company is valued at $36 billion after the first day of trading, media reports said. JD Logistics’ shares soared 14 percent after its much-anticipated debut.
Shares of JD Logistics opened at HK$46.05 compared to the HK$40.36 price in their initial public offering (IPO). It is being regarded as the second biggest listing on the Hong Kong Stock Exchange this year. According to reports, JD Logistics’ IPO was 715.61 times oversubscribed, with a reported 1 million investors bidding.
Earlier this year, it was reported that JD Logistics is planning to raise around $5 billion by listing its shares on the Hong Kong Stock Exchange and the company could be valued at $40 billion.
In a filing, JD Logistics said that it will remain a majority shareholder and will realise value from the business in the listing. JD.com holds just over 79 percent share in the company.
In December 2020, 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.