JD.com said to seek $4.1b in year’s biggest Hong Kong listing

JD.com Inc. headquarters in Beijing. Photographer: Qilai Shen/Bloomberg

China’s No. 2 online retailer JD.com Inc. is seeking to raise as much as HK$31.4 billion ($4.05 billion) for a second listing in Hong Kong, as the Nasdaq-listed firm seeks a foothold closer to home amid rising U.S.-China tensions.

JD.com is offering 133 million new shares at as much as HK$236 each, according to terms of the deal obtained by Bloomberg News. The maximum price represents a 7.8% premium to JD.com’s Thursday closing price in New York.

JD.com’s share sale is set to be the largest in Hong Kong this year, coming hot on the heels of NetEase Inc.’s $2.7 billion offering in the city.

Escalating tensions between Washington and Beijing are increasing risks for Chinese companies like JD and NetEase that are seeking to broaden their investor base. There have also been fears over the impact of national security legislation set to be imposed on Hong Kong, including the resumption of protests in the city.

The debuts would follow Alibaba Group Holding Ltd.’s $13 billion stock sale last year, hailed as a homecoming for Chinese companies and a win for Hong Kong stock exchange. The city lost many of the largest tech corporations to U.S. bourses because it didn’t allow dual-class share voting at the time — a requirement that’s since been relaxed.

JD.com’s Hong Kong share sale represents about 4.3% of its total shares outstanding before an over-allotment option. The company is taking orders from institutional investors from Friday and will kick off retail investor subscription on June 8, according to the terms.

It aims to price the offering on June 11 and to begin trading on June 18. JD.com plans to use the proceeds for key supply chain-based technology initiatives.

Bank of America Corp., UBS Group AG and CLSA Ltd. are joint sponsors of JD’s Hong Kong share sale.

Bloomberg

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.

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.