JD.com to spin off logistics arm for US$4b

JD.com's (9618) logistics unit will file for its Hong Kong initial public offering as soon as this month, aiming to raise US$4 billion (HK$31.2 billion), IFR reported. The spinoff, JD Logistics, is targeting a valuation of US$40 billion, the report said. The company plans to start trading in the...

Reuters and Avery Chen

Wednesday, February 03, 2021

JD.com's (9618) logistics unit will file for its Hong Kong initial public offering as soon as this month, aiming to raise US$4 billion (HK$31.2 billion), IFR reported.
The spinoff, JD Logistics, is targeting a valuation of US$40 billion, the report said. The company plans to start trading in the second quarter.
The offshoot of Chinese e-commerce giant JD.com would be the second subsidiary of the parent company to be spun off and listed in Hong Kong, following JD Health International (6618), which completed a HK$31 billion IPO last month.
JD.com is also planning to spin off JD Digits, the company's fintech arm, in Shanghai Star Market to raise around 20 billion yuan (HK$24.01 billion).
UBS, Bank of America and Haitong Securities will be the sponsors for JD Logistics' IPO. UBS and BofA also sponsored JD.com's HK$34.5 billion secondary listing in June, the largest listing in Hong Kong in 2020.
In 2018, the division raised US$2.5 billion in a funding round from investors including Hillhouse Capital Group, Sequoia Capital China, China Merchants Group, Tencent (0700), and China Life Insurance (2628). The deal valued JD Logistics at US$13.5 billion.
Separately, telecom connectivity products distributor Pangaea Connectivity Technology attracted at least HK$299 million in retail orders through margin financing as of last night, equivalent to an oversubscription of 19.6 times.