JD Logistics' US$3.5 billion IPO draws SoftBank, Temasek

Hong Kong

JD Logistics has attracted SoftBank Vision Fund and Temasek Holdings as cornerstone investors in its Hong Kong initial public offering (IPO), people with knowledge of the matter said, as the warehousing and shipping firm is set to kick off one of the year's biggest share sales in the city.

Blackstone Group and Tiger Global also committed to buy stock in the offering, said the sources, asking not to be identified because the information is private.

SoftBank Vision Fund is set to invest US$600 million in the offering, accounting for 40 per cent of the US$1.5 billion worth of shares the company has set aside for about seven cornerstone investors, the sources said.

That would make the prolific investor one of the largest shareholders in the company after its parent, JD.com.

Temasek is signing up to buy US$220 million worth of stock, the sources said. China Chengtong Holdings Group Ltd, Matthews Asia and Oaktree Capital have also agreed to purchase shares, they said.

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JD Logistics is targeting to raise as much as US$3.5 billion in the first-time share sale and is set to start taking orders as soon as next week, the sources said.

It would be the second-largest IPO in the city this year, after Kuaishou Technology's US$6.2 billion listing in February.

Bank of America, Goldman Sachs Group and Haitong International Securities Group Ltd are the joint sponsors of the offering, said its preliminary prospectus.

Cornerstone buyers typically agree to hold stock for a set period of time in exchange for early, guaranteed allocation. JD Logistics is still finalising terms of the offering, and details could change, the sources said.

An external representative for JD Logistics and representatives for Blackstone, SoftBank Vision Fund and Temasek declined to comment.

Representatives for China Chengtong, Matthews and Oaktree did not immediately respond to requests for comment.

A representative for Tiger Global did not immediately respond to a request for comment outside of US business hours. BLOOMBERG