The logistics unit of JD.com Inc. seeks to generate as much as $3.4 billion from what could be among Hong Kong’s biggest initial public offerings (IPOs) this year, Reuters reported.
- JD Logistics will sell 609.1 million shares, equivalent to 10% of the total. An over-allotment of 91 million shares has been set, which could generate another $510 million.
- Shares will be priced between HK $39.36 and HK $43.36 apiece. The final price will be determined on Friday.
- The stock will start trading on the Hong Kong Stock Exchange on May 28, after which JD Logistics will be valued at as high as $34 billion.
- Cornerstone investors committed to take $1.53-billion worth of shares or 45% of the IPO, led by SoftBank Group Corp.’s Vision Fund, and Temasek.
- More than half of the proceeds will be used for the upgrade of the logistics network in the next one and a half years, while 20% will be for technology development.
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