JD Industrial to seek Hong Kong listing next month, fundraising below earlier target

Jingdong Industrial, a supply chain unit of Chinese e-commerce giant JD.com (9618), is reportedly preparing for a Hong Kong initial public offering next month, aiming to raise up to US$600 million (HK$4.68 billion), down from the roughly US$1 billion target reported earlier this year.

The company filed its listing application with the Hong Kong Stock Exchange shortly after obtaining offshore listing approval from China’s securities regulator. According to the filing, JD Industrial plans to issue no more than 253 million ordinary shares.

Its preliminary prospectus shows that UBS has joined the offering as a joint sponsor. Other joint sponsors include Bank of America, Goldman Sachs and Haitong International.

It posted revenue of 10.25 billion yuan (HK$11.19 billion) in the first half of this year, up 19 percent year-on-year, with net profit of 450 million yuan, a 55 percent increase from a year earlier.