JD Logistics, the logistics offshoot of China-headquartered e-commerce group JD.com, floated on the Hong Kong Stock Exchange today in a HK$24.6bn ($3.2bn) initial public offering.
The offering consisted of approximately 609 million shares priced at HK$40.36 each, towards the lower end of the IPO’s HK$39.36 to HK$43.36 range. They opened at HK$46.05 this morning and closed at HK$41.70.
Formed by JD.com as its delivery services arm, JD Logistics combines artificial intelligence technology with a China-wide network of warehouses to deliver e-commerce products to customers within 24 hours.
The IPO proceeds will go to strengthening its logistics infrastructure, part of a drive that has involved it opening some 200 warehouses this year, according to the Financial Times.
JD.com’s stake in the spinoff was diluted from 79.1% to 64.4% in the offering. It had raised $2.5bn from investors including internet and gaming group Tencent and insurance firm China Life in 2018.
The 2018 round was filled out by financial services firm Industrial and Commercial Bank of China’s ICBC International subsidiary, Sequoia China, China Merchants Group, China Development Bank Capital FOF, China Structural Reform Fund and Hillhouse Capital.
The flotation came almost six months after another JD.com spinoff, telemedicine and medical products platform developer JD Health, secured $3.48bn in its own Hong Kong IPO. Real estate services subsidiary JD Property had agreed $700m in series A funding from external investors in March this year.
