JD Logistics to raise US$3.16 billion in Hong Kong IPO -sources

HONG KONG -JD Logistics Inc has indicated it will price shares at HKUS$40.36 (US$5.20), towards the lower end of its flagged range, to raise US$3.16 billion in a Hong Kong initial public offering (IPO), two people with direct knowledge of the matter said.

The people declined to be identified as the information has not yet been made public.

JD Logistics did not immediately reply to a request for comment.

It had set a price range of HKUS$39.36 to HKUS$43.36 per share which would have raised US$3.4 billion at the top end.

The company sold 609.1 million shares in the deal, which is Hong Kong's second-largest IPO this year following Kuaishou Technology raising US$5.4 billion in January.

JD Logistics sold 10per cent of its total shares in the transaction, valuing the company at US$31.6 billion.

An over-allotment option, or so-called greenshoe, exists to sell a further 91 million shares within 30 days of the shares starting trade.

JD Logistics is due to debut on the Hong Kong Stock Exchange on May 28.

The company recorded 22.4 billion yuan (US$3.48 billion) in revenue in the first quarter of 2021, up 64.1per cent from the same period in 2020.

Its gross profit for the quarter reached 230.7 million yuan, down 72.7per cent from the same time last year, which it blamed on the impact of the novel coronavirus pandemic as well as adding 60,000 workers to its headcount during the year.

(US$1 = 7.7621 Hong Kong dollars)

(US$1 = 6.4341 Chinese yuan renminbi)

(Reporting by Scott Murdoch in Hong Kong; Editing by Tom Hogue and Christopher Cushing)