JD Logistics Selects investment Bank for Hong Kong IPO

On January 4, according to IFR quoting people familiar with the matter, JD Logistics has selected Bank of America and Goldman Sachs to take the lead in handling the Hong Kong IPO. The company’s valuation may reach approximately US$40 billion. The source said that JD Logistics plans to go public in the second or third quarter of 2021 and raise at least US$4 billion. Observer.com asked JD for verification, and JD.com responded that it would not comment.

Since 2019, news of JD Logistics will be listed independently.
According to a Reuters report in November last year, JD Logistics is already preparing for an initial public offering and may be listed in Hong Kong or the United States. According to relevant sources, the transaction may involve the sale of 10% to 20% of the shares at a price of 4 to 8 billion US dollars.
During the New Year, JD Group has made continuous moves in the capital market. On June 18, JD.com completed its secondary listing in Hong Kong; on the evening of September 11, the Shanghai Stock Exchange’s Science and Technology Innovation Board disclosed a prospectus for JD.com. It plans to raise 20 billion yuan; on December 8, JD.com Health also officially launched Listed on the Hong Kong Stock Exchange.
If the rumors are true, JD Logistics will become the third subsidiary of JD Group to conduct an IPO.
At present, JD Logistics has six logistics networks for small and medium-sized items, large items, cold chain, B2B, cross-border and crowdsourcing (Dada).
JD.com disclosed in its financial report for the third quarter of 2020 that as of September 30, 2020, JD Logistics’ service revenue was approximately 10.4 billion yuan, a year-on-year increase of 73%, far higher than JD’s overall revenue growth rate of 28%.
The financial report shows that as of September 30, 2020, JD Logistics operates more than 800 warehouses, including the cloud warehouse area managed by JD Logistics, with a total storage area of ​​approximately 20 million square meters.
Competition in the express delivery industry has intensified, and various companies have used blood transfusions through the capital market. In addition to JD Logistics, another express delivery giant, SF Holdings, has also recently reported that it is considering IPO of its main express delivery business in Hong Kong stocks to raise about 5 billion US dollars. In September last year, ZTO Express was officially listed on the main board of the Hong Kong Stock Exchange, completing the secondary listing of Hong Kong stocks.
However, when it was rumored to go public, the top management of JD Logistics changed. JD Group announced on December 30, 2020 that the former CEO of JD Logistics Wang Zhenhui resigned from the post of JD Logistics CEO due to personal reasons. The board of directors has appointed Yu Rui, the former chief human resources officer of JD Logistics, as the CEO of JD Logistics.