JD Logistics soars in Hong Kong worth $ 36 billion
By Scott Murdoch and Sophie Yu
HONG KONG / BEIJING (Reuters) -JD Logistics Inc climbed 14% on its debut, giving the Chinese delivery and warehousing company a market value of $ 36 billion and providing a good start on Friday for what is n is the third mega listing in Hong Kong so far this year.
The company’s shares, from Chinese e-commerce company JD.com, opened at HK $ 46.05 from HK $ 40.36 when they were first listed on the public market (IPO). The city’s benchmark Hang Seng index rose 0.36%.
JD Logistics’ stock gains come after pricing its $ 3.2 billion IPO closer to the lower end of a stated range.
“We will use the funds raised during the IPO to further improve our networks, including in suburban and suburban areas of China, and the infrastructure of overseas markets,” JD Logistics CEO Yu Rui said during briefing in Beijing Friday to mark the registration.
The company’s securities filings showed that the retail portion of the IPO was oversubscribed 715 times by individual investors who were competing for just 3% of the shares offered.
The high level of demand among retail investors means that under Hong Kong’s “payback” rules, the shares on offer rose from 3% to 9%, according to the filings.
The institutional investor portion of the deal was 10.18 times oversubscribed and 580 investors received shares, according to the documents filed.
Cornerstone investors, who signed up for the deal before it opened to the public and included high profile investors such as SoftBank Group Corp’s Vision Fund, Temasek Holdings and BlackRock, took 48.3% of the shares.
The IPO is the second largest in Hong Kong in 2021 and only the third to raise more than $ 1 billion in the city this year.
The other two were Kuaishou Technology, which jumped 161% on its January debut, and Linklogis Inc, which gained 9.9% in April on opening day.
(Reporting by Scott Murdoch in Hong Kong and Sophie Yu in Beijing; Additional reporting by Donny Kwok in Hong Kong; Editing by Muralikumar Anantharaman)