JD Logistics gets ball rolling for US$4b IPO

Finance | Avery Chen and Reuters 4 May 2021

JD Logistics, JD.com's (9618) delivery unit, has begun pre-marketing for its up to US$4 billion (HK$31.2 billion) Hong Kong initial public offering and is expected to sell shares within the month, local media reported.

The Beijing-based company got IPO approval from the Hong Kong stock exchange last week.

JD Logistics saw revenue rise 47.2 percent to 73.37 billion yuan (HK$88.03 billion) last year, according to the latest prospectus. But the company has yet to turn a profit, and its net loss widened 85 percent to 4 billion yuan last year.

That's because it has been invested heavily to expand its logistics infrastructure network and the loss in the fair value of its convertible redeemable preferred shares continued to weigh on its earnings performance.

In addition, JD Logistics expects to record a significant adjusted loss in 2021.

Haitong International Securities, a joint sponsor of the deal, projects JD Logistics could achieve breakeven next year, with a target valuation between US$42.4 billion to US$44.3 billion.

Meanwhile, Hangzhou Xpower Technology, a mobile power bank sharing firm backed by Tencent (0700) and Ant Group, is seeking to raise between US$200 million to US$300 million in a Hong Kong listing, Reuters' IFR reported.

In other news, Chinese online insurance technology firm Waterdrop aims to raise up to US$360 million in an IPO on the New York Stock Exchange, company filings show.

Waterdrop, which is backed by Tencent, will sell 30 million American Depository shares for between US$10 and US$12 each, it said in the filings with the Securities and Exchange Commission.

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