JD.com Inc’s (NASDAQ: JD) delivery arm, JD Logistics Inc, has raised around $3.16 billion from its Hong Kong initial public offering (IPO) at $5.2 per share towards the lower end of its indicated range, symbolizing investor caution, Reuters reports.
The IPO valued JD Logistics at $31 billion, below the initially targeted valuation of $40 billion. It would have raised .4 billion under the indicated price range of HK$39.36 - HK$43.36.
JD Logistics will start trading on the Hong Kong Stock Exchange on May 28.
The investor demand in Hong Kong’s IPO market has lost steam due to concerns surrounding inflation and weakness in global stocks, Bloomberg reports. The IPO marks China’s second-largest listing in 2021 after short video company Kuaishou Technology’s $6.2 billion February float.
JD.com had spun off its logistics unit into a standalone entity in 2017 and launched its delivery and warehousing services to third-party companies. Still, it owned around 79% of JD Logistics.
Price action: JD shares traded higher by 1.22% at $74.6 in the premarket session on the last check Friday.
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