JD Logistics, the logistics services subsidiary of China-headquartered e-commerce firm JD.com, received approval yesterday for an initial public offering expected to net it up to $4bn, the South China Morning Post reported.
The offering is set to be sized between $3bn and $4bn, according to people familiar with the matter. A source told DealStreetAsia in February this year JD.com would seek a $40bn valuation for the IPO.
Launched in 2017, JD Logistics provides delivery and warehousing services to online merchants, the latter through a network of about 900 warehouses across China. It is also looking to automate part of its offering through the use of driverless delivery vehicles.
JD.com owns 79.1% of the spinoff and is set to retain a majority stake once the offering closes. BofA Securities, Goldman Sachs and Haitong International are the joint sponsors of the IPO.
Internet group Tencent and insurance firm China Life, Hillhouse Capital, Sequoia China, China Merchants Group, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International had provided $2.5bn for JD Logistics in 2018 at an apparent $12.8bn valuation.
The proposed IPO comes after another JD.com subsidiary, digital healthcare services provider JD Health, floated in a $3.48bn offering in December 2020.
A third subsidiary, financial services provider JD Technology – formerly known as JD Finance and JD Digits – had been planning to go public but its parent withdrew the proposed IPO in February this year.
