China’s JD.com is looking to raise up to HK$35.6 billion (US$4.6 billion) in its second listing in Hong Kong.
Photo credit: JD.com
In a prospectus dated June 8, the ecommerce major said it will be offering 133 million new shares, priced at HK$236 apiece, to raise about HK$31.4 billion (US$4.05 billion). Of those shares, 6.65 million will be offered locally while the remaining will be offered internationally.
If the overallotment option is exercised in full, that amount will be bumped up to US$4.6 billion, the company said, adding that it plans to use the proceeds to fuel supply chain-based tech initiatives.
Specifically, it will continue investing in key operational systems, such as its smart pricing and inventory management system, customer service solutions, and omnichannel smart retail platform. It also aims to build a suite of in-house logistics systems and bolster its research and development team.
The Walmart-backed company aims to begin trading on June 18.
JD.com will become just the third company to launch a secondary listing in Hong Kong. It is also expected to be the largest Hong Kong public offering so far this year. Chinese internet giant NetEase is also seeking around US$2.7 billion in a stock sale in the city.
These moves follow Alibaba’s successful US$13 billion Hong Kong offering last year.
JD.com and NetEase are just two of the Chinese companies expected to list in the city this year, as escalating tensions between the US and China continue to pose great risk. It was earlier reported that other tech giants such as search engine Baidu, fast-food firm Yum China, and travel agency Ctrip are also eyeing secondary listings in Hong Kong
Editing by Charmaine de Lazo
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