JD Logistics, the logistics services subsidiary of China-based e-commerce firm JD.com, has set a price range of HK$39.36 to HK$43.36 ($5.07 to $5.59) for its proposed initial public offering that will raise up to $3.4bn.
The target range is in line with reports last month that JD Logistics would seek between $3bn and $4bn in proceeds. It aims to trade on the Hong Kong Stock Exchange under the code 2618.
JD Logistics was launched by JD.com in 2017 to offer delivery and warehousing services to online merchants, claiming that as many as 90% of last-mile deliveries are conducted on the same day or next day.
The company is also working on automating part of its service through autonomous delivery vehicles.
JD.com currently holds a 79.1% stake and is set to walk away with approximately 64.4% following the IPO.
JD Logistics secured $2.5bn in funding from internet company Tencent and insurer China Life, as well as Hillhouse Capital, Sequoia China, China Merchants Group, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International, in 2018.
Just over half of proceeds from the IPO will allow JD Logistics to further expand its logistics network over the next 12 to 36 months. Money has also been allocated to developing supply chain technologies, as well as growing the client base and supporting general corporate purposes.
Merrill Lynch (Asia Pacific), Goldman Sachs (Asia), Haitong International Securities, UBS AG Hong Kong Branch, CLSA, ICBC International Securities, CCB International Capital, China Renaissance Securities (Hong Kong), BOCOM International Securities, BOCI Asia, ABCI Securities, Guotai Junan Securities (Hong Kong), Futu Securities International (Hong Kong), Mizuho Securities Asia and CMB International Capital are the underwriters.
