JD.com plans to spin off shipping unit in Hong Kong listing

REUTERS/Aly Song

Chinese e-commerce giant JD.com Inc. said it plans to spin off its JD Logistics Inc. shipping business in a listing on the Hong Kong Stock Exchange.

The unit may be valued at about $40 billion, people familiar with the matter had said previously. JD.com will remain a majority shareholder and will realize value from the business in the listing, the company said in a regulatory filing. Details of the proposed spinoff haven’t been finalized, the company said.

Global Covid-19 lockdowns have accelerated a surge in demand for logistics services, as the pandemic kept shoppers out of physical stores and boosted online demand.

Chinese e-commerce sales have increased several fold during this period, making companies that help handle shipping and deliveries particularly attractive, Elysia Tse, head of Asia Pacific research and strategy at LaSalle Investment Management, said in an interview with Bloomberg Television earlier this month.

JD.com made the logistics business, which offers warehousing and distribution services, a separate entity in 2017. JD Logistics operated more than 800 warehouses across China as of Sept. 30.

In an IPO filing to the Hong Kong stock exchange, JD Logistics reported a loss of 71.2 million yuan ($11 million) in the nine months ended September 2020 on 49.5 billion yuan of revenue. That compared with a 996.3 million yuan loss on 34.6 billion yuan of revenue in the same period a year earlier.

BofA Securities Inc., Goldman Sachs Group Inc. and Haitong International Capital are joint sponsors of the proposed logistics unit IPO, according to the preliminary prospectus filed to HKEX.

Bloomberg

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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).

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.