JD.com’s supply-chain technology unit seeks up to HK$3.3 billion in Hong Kong IPO

[HONG KONG] JD.com’s supply-chain technology unit has started taking investor orders for a Hong Kong initial public offering (IPO) that may raise as much as HK$3.3 billion (S$549 million), capping more than two years of efforts to go public.

Jingdong Industrials is offering 211 million shares at HK$12.70 to HK$15.50 each, according to a filing to the Hong Kong stock exchange on Wednesday (Dec 3). The Beijing-based company is set to list its shares on Dec 11.

Jingdong Industrials is among the last wave of companies driving Hong Kong’s hot IPO market this year, which is on track to see listing proceeds closing at a four-year high.

The company said it plans to use the funds to enhance its industrial supply-chain capabilities, including AI technologies, and to support expansion, investments, and acquisitions.

Jingdong Industrials first filed for an IPO in March 2023 but received approval from China’s securities regulator only in September this year.

JD.com said in 2023 that a carve-out listing would better reflect the unit’s value, allowing it to directly access equity and debt capital markets. At the time, the e-commerce platform also sought a listing for its property arm, which has not yet been approved by the China Securities Regulatory Commission.

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Bank of America, Goldman Sachs, Haitong International, and UBS Group are joint sponsors of the offering. BLOOMBERG