JD Logistics Discussing Overseas IPO Insiders Say
The logistics unit of JD.com is eyeing a potential overseas IPO that could raise $8 – $10 billion, two insiders revealed to Reuters.
According to Reuter’s sources, JD Logistics is targeting a valuation of $30 billion or more which it could achieve in the second half of 2020.
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The unit is expected to select banks for the IPO in the second quarter of next year and will use the funds for warehouse expansion and potential acquisition purposes, explained one of the experts.
The timetable and venue have not been finalized and the numbers are subject to changes, the people said. It also remains unclear whether the listing will take place on the New York or Hong Kong Stock Exchange.
JD.com spun off its logistics unit into a standalone entity in 2017, and a year later the company’s valuation reached about $13.5 billion. JD Logistics is one of the top players in China’s warehousing space sector and operates more than 650 warehouses.