Chinese e-commerce giant JD.com said to hire banks for HK listing

A JD.com sign is seen during the fourth World Internet Conference in Wuzhen, Zhejiang province, China, December 4, 2017. REUTERS/Aly Song/Files

Chinese e-commerce retailer JD.com Inc has hired Bank of America and UBS to work on the second listing in Hong Kong, the latest to join the queue of Chinese companies expected to follow Alibaba to trade closer to home, two people with direct knowledge told Reuters.

The listing could happen as early as mid-2020, said the people, who declined to comment as the information is confidential.

JD.com, whose current market cap is at $58.2 billion, did not immediately respond to a query for comment. The two banks declined to comment.

JD.com’s secondary listing comes as China is gradually recovering from a coronavirus outbreak in January that has infected over 80,000 people, claimed over 3,000 lives and paralysed businesses and public services nationwide.

Rival Alibaba warned in mid-February of a drop in revenues at its key e-commerce businesses in the first quarter as the coronavirus sweeping China hits supply chains and deliveries.

JD.com contrarily forecast revenues to rise by at least 10% for the same quarter, benefiting from partnerships with supermarkets for delivering fresh produce and groceries to shoppers choosing to stay indoors due to fears of infection.

Alibaba raised $12.9 billion in Hong Kong in November, which was the city’s largest deal since 2010 and the world’s biggest ever cross-border secondary listing, prompting a number of US-traded Chinese companies to follow suit, including online travel giant Ctrip and internet companies NetEase Inc and Baidu Inc.

Companies, however, have not been able to conduct face-to-face meetings with advisers or potential investors due to travel restrictions linked with the outbreak.

JD.com has kicked off preparations for the second listing some time ago, said one of the people. It is not yet clear when the company will file for the listing.

JD’s total net revenue rose 27% to 170.68 billion yuan in the fourth quarter ended Dec. 31. It was traded at $39.71 per share as of Friday’s close.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.