Tech’s logistics arm seeks to raise up to $3.4bn in Hong Kong IPO

JD Logistics, the distribution arm of China’s e-commerce group, is aiming to raise up to $ 3.4 billion, one of Hong Kong’s largest initial public offerings this year.

The company’s decision to go public follows the boom in online shopping during the coronavirus pandemic. But, Tighter regulatory environment The recent fall in shares in SF Holding, one of JD Logistics’ biggest competitors, has reduced the company’s proposed IPO price by about a quarter, according to contractors. ..

JD Logistics will sell 609.2 million shares for HK $ 39.36-HK $ 43.36 ($ 5.07- $ 5.58) respectively. According to the terms and conditions seen by the Financial Times, the final price will be set on Friday and the stock will open on May 28th.

The IPO will be the second largest in the city this year. KuaishouChina’s viral video app raised $ 5.4 billion in February, making it the third blockbuster list by in Hong Kong over the past year. JD Health, which sells pharmaceuticals and healthcare services online, $ 4 billion IPO in December And ran independently Secondary listing We raised a similar amount on the territory last June.

Hong Kong has benefited from a flood of high-profile lists by Chinese tech companies in recent months, hosting over $ 20 billion in IPOs this year, according to Bloomberg data. founded its logistics and delivery division in 2007 and spun out into a standalone unit 10 years later. The company operates more than 900 warehousing in China, providing delivery and warehousing services to third parties.

However, this group is one of those under pressure as China is strengthening its scrutiny of the largest internet group. Last month, officials told 13 of the country’s largest tech companies, including, Tencent and ByteDance’s FinTech subsidiaries: “Fix a noticeable problem” On their platform. The push was seen as a sign that regulatory focus on this sector has expanded beyond Jackma’s Ant Group since the $ 37 billion IPO of fintech companies was terminated in November last year.

Separately, shares in China’s largest publicly traded delivery company, SF Holding, plunged last month after quarterly losses upset investors and prompted scrutiny of the high valuations imposed on Chinese companies.

According to the terms of the deal, JD Logistics IPO Cornerstone investors, including Technology Group’s Softbank Vision Fund, Temasek Holdings, Singapore’s state-owned investment company, investment firm Tiger Global and Blackstone, have subscribed to approximately $ 1.5 billion in shares. ..

Bank of America, Goldman Sachs and Highton International are co-sponsors of the listing.

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