JD.com to pursue HK listings for industrial, property units

Photo credit: Shutterstock

Chinese ecommerce major JD.com announced plans to spin off its industrial and property units through Hong Kong listings for both.

With the reorganization, JD.com seeks to increase operational and financial transparency and help investors assess the individual performance of both units, the firm said in a filing with the US Securities and Exchange Commission.

The two units can also attract a wider base of investors that are more focused on opportunities in infrastructure asset management and integrated property services.

After completing the spin-off, JD.com will own more than 50% of both JD Property and JD Industrials, keeping them as its subsidiaries.

As of the announcement date, JD.com holds 77.95% and 74.96% of the total issued share capital of JD Property and JD Industrials, respectively.

See also: 5 key takeaways from Lalamove’s draft prospectus to list in HK

The spin-offs follow Alibaba deciding to break up its diverse operations into six distinct units and seek independent financial debuts. The announcement was well received by investors, with the company’s shares seeing a 14.26% boost on the day the plans were revealed.

Also, the Stock Exchange of Hong Kong recently made changes to its requirements for listing, making it easier for more tech firms to offer their shares on the exchange.