Dow Jones Stock Market Today – JD Logistics to Raise Over US$3 Billion in Hong Kong IPO
By P.R. Venkat
JD Logistics Inc. will raise over US$3 billion from an initial public offering in Hong Kong after pricing its shares at the lower half of an indicative range.
The logistics arm of JD.com Inc. set the IPO price at 40.36 Hong Kong dollars (US$5.20), the company said Thursday.
JD Logistics sold 609.16 million new shares and had an indicative price range of HK$39.36 to HK$43.36 each.
Shares of the company will start trading on the Hong Kong Exchange starting Friday.
The offering size could increase by up to 15% to $3.6 billion if a “green-shoe” option is exercised.
Proceeds from the IPO will be used to upgrade and expand logistics networks and technology development, the company said.
JD Logistics’ IPO follows share sales in the city by JD.com and another of its subsidiaries last year, which in total raised nearly $8.5 billion, according to Dealogic.
The company competes with businesses such as Shenzhen-listed S.F. Holding Co., ZTO Express Cayman Inc. and Alibaba’s logistics arm, Cainiao Network Technology Co.
JD.com’s IPO plan is the latest in a string of multi-billion deals that are happening in Hong Kong, many involving Chinese technology startups or other companies catering to China’s increasingly affluent consumers.
Write to P.R. Venkat at [email protected] Zoom.com
(END) Dow Jones Newswires
May 26, 2021 19:05 ET (23:05 GMT)
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