Shares of Jingdong Industrials (7618), a unit of Chinese online retailer JD.com (9618), opened down 7.8 percent in their Hong Kong Stock Exchange debut on Thursday, after the company raised HK$2.98 billion in a listing.
Shares of the industrial supply chain technology and services provider are set to open at HK$13 each, as compared to the listing offer price of HK$14.10 apiece. That lagged a 0.7 percent rise in the benchmark Hang Seng Index.
The long-awaited IPO comes as US market volatility has weighed on Hong Kong listings, with investor caution rising after a blockbuster year that crowned the city as the world's top listing venue by deal volume.
Hong Kong's Hang Seng Index is up 28 percent this year, outperforming US benchmarks, though it has fallen by about 4 percent so far in the fourth quarter, LSEG data showed.
The IPO of Jingdong Industrials, also known as JDi, fell short of its initial target of US$500 million (HK$3.9 billion), sources have said. Its valuation in the offering - about US$5 billion based on Reuters calculations - was lower than its US$6.7 billion valuation in a 2023 pre-IPO funding round.
JDi said it planned to use about 35 percent of the IPO's proceeds to enhance its supply chain over the next two to three years. Another 25 percent of the funds will be spent on expanding the JDi business across different locations.
Reuters
