Shares in JD Logistics jumped by 14 percent on its first day of trading after raising US$3.2 billion in Hong Kong’s second-largest initial public offering this year.
Shares of the delivery arm of Chinese e-commerce company JD.com Inc. traded at HK$46.05, after having surged by 29 percent in the gray market, Bloomberg reports. The stock had been priced at HK$40.36, the lower end of its offered range, fueling concern that demand for new listings in the Asian financial center has cooled after the blockbuster coming-out party of Kuaishou Technology earlier this year.
JD.com’s stock climbed by 0.8 percent, at HK$286.80.
The listing will allow JD Logistics to expand its network of more than 900 warehouses into less-developed regions of China and new markets overseas, while adding to the US$782 million it’s spent on technology between 2018 and 2020.
The company joins internet giants from Alibaba Group Holding to Tencent Holdings and Meituan in boosting spending, as increased antitrust scrutiny from regulators in Beijing threatens their most lucrative businesses from e-commerce to fintech.
“Frankly speaking, the focus for next few years will still be growth,” Chief Executive Yu Rui, said in an interview with Bloomberg Television. “We will focus on business expansion and revenue growth for the next several years. Our net margin will keep improving in the long-term.”
A worker at JD.com's automated logistics center during a government organized tour on China's Singles Day shopping festival in Beijing, November 11, 2020.
