JD.Com’s logistics unit said to tap banks for potential $8-10b IPO

REUTERS/Aly Song/Files

The logistics unit of Chinese e-commerce company JD.com Inc has held early discussions with banks about a potential overseas IPO that could raise $8 billion to $10 billion, two people with direct knowledge of the matter told Reuters.

JD Logistics is targeting a valuation of at least $30 billion, according to the people, who declined to be named as the information is confidential.

The unit is expected to select banks for the initial public offering (IPO) in the second quarter of next year and will use the funds for warehouse expansion and potential acquisition purposes, one person said.

The float could take place in the second half of 2020, the people said.

JD.com, the second-largest Chinese e-commerce company after Alibaba, declined to comment.

The listing could happen in Hong Kong or New York, although a timetable and venue have not been finalised and the numbers are subject to changes, the people said.

JD.com spun off its logistics unit into a standalone entity in 2017, and then opened up the latter’s delivery and warehousing services to third-party companies.

In 2018, the division raised $2.5 billion in a funding round from investors including Hillhouse Capital Group, Sequoia Capital China, China Merchants Group, Tencent Holdings, and China Life Insurance.

The company’s valuation reached about $13.5 billion after the fundraising.

As of Sept. 30, JD Logistics operated more than 650 warehouses, which covered an aggregate gross floor area of approximately 16 million square meters.

The company is among the top players in China in terms of warehousing space.

Reuters

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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).

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  • 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.