JD Logistics' US$4b IPO gets green light

JD.com's (9618) logistics unit has been given green light for its Hong Kong initial public offering yesterday, Reuters' IFR reported.

JD Logistics is seeking to raise up to US$4 billion (HK$31.2 billion), according to earlier reports. It could be the second subsidiary of JD.com listed in Hong Kong, following JD Health International (6618), which raised more than HK$30 billion from its IPO in December last year. JD.com also has completed a HK$34.5 billion secondary listing in June last year.

Meanwhile, Zhaoke Ophthalmology (6622), a spin-off of Lee's Pharmaceutical (0950), dropped 14.76 percent to HK$14.32 in its market debut yesterday, with a turnover of HK$620.46 million.

The Guangzhou-based firm raised HK$297.4 million after pricing the IPO at HK$16.80 apiece, the top end of the indicative price range.

It is yet to make a profit, and reported a net loss of 727 million yuan (HK$872.46 million) last year. Chief financial officer Feng Xinyan expects the firm will not turn a profit until 2023 when it commercializes innovative drugs.

Also, Li Xiaoyi resigned as chief executive and chief technical officer of Lee's Pharmaceutical to "devote more time to other business commitments," the company said yesterday.

Separately, mainland pharmaceutical firm Edding Group is seeking to pass the listing hearing for its Hong Kong IPO that could raise US$300 million, local media reported.