Foxconn's US$4b unit Jusda seeks pre-IPO financing: sources

[HONG KONG] Jusda, a logistics arm of Foxconn Technology Group, is considering raising funds from private investors ahead of a potential initial public offering (IPO) as early as next year, according to people familiar with the matter.

The supply chain management platform is seeking to raise US$300-400 million in a so-called pre-IPO round, the sources said, asking not to be identified because the matter is private. The company, which has a valuation of as much as US$4 billion, would use the proceeds for expansion amid a boom in logistics services, they added.

The company is also in the early stages of evaluating a potential listing in Hong Kong in the second half of next year, the sources said.

No final decision has been made as considerations are preliminary, and details such as the size of the fundraising could still change, the sources added.

Foxconn spokesman Jimmy Huang said Jusda has no plan for an IPO now, and declined to comment on the fundraising.

Jusda has more than 2.5 million sq m of warehouse space at 150 locations around the world, with over 1,500 air, ocean and truck routes, according to its website. Besides managing the transportation of goods for Foxconn, which is the largest assembler of Apple Inc's iPhones, it also serves as a logistics platform for more than 1,000 global brand customers. It raised about 2.4 billion yuan (S$514 million) in a series A round in 2019, the website shows.

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