JingDong Industrials, a unit of Chinese online retailer JD.com, is aiming to raise up to HK$3.27 billion ($420.08 million) in its Hong Kong initial public offering, according to a prospectus lodged on Wednesday.
The company, also known as JDi, is offering 211.2 million shares in a price rage of HK$12.70 to HK$15.50 each.
The IPO represents about 7.7% of JDi’s enlarged share capital, with an over-allotment option of up to 15% that could lift proceeds to as much as $484 million, according to the term sheet seen by Reuters.
At the indicated price range, the IPO implies a post-offering valuation of about $4.5 billion to $5.5 billion, based on Reuters calculations.
That compares with a $6.7 billion valuation in its pre-IPO round in 2023, according to a previous Reuters report, which also said the company could face a valuation cut in the IPO.
Final pricing is slated for December 10, with shares set to debut on the Hong Kong exchange the following day.
Seven Cornerstone investors led by British investor M&G and CPE I Investment will buy about $170 million worth of shares in the IPO.
JDi is an industrial supply chain technology and services provider in China. It said it planned to use about 35% of the IPO proceeds to enhance its supply chain capabilities over the next two to three years. A further 25% of the funds raised will be spent on expanding the JDi business across different locations.
The offering is split into an international tranche of 90% and a Hong Kong public offering of 10%, subject to reallocation, according to the term sheet.
The company, its cornerstone investors and pre-IPO backers are subject to a six-month lock-up, while controlling shareholders face up to 12 months, the term sheet showed.
The long-awaited IPO comes as U.S. market volatility weighs on Hong Kong listings, with investor caution rising after a blockbuster year that crowned the city as the world's top listing venue by deal volume.
Reuters reported on the planned offering last week. - Reuters
