What’s new: JD Logistics Inc., the delivery arm of e-commerce giant JD.com Inc., expects to price its IPO between HK$39.96 ($5.14) and HK43.36, which would raise up to HK$26.4 billion, according to its Monday filing to the Hong Kong Stock Exchange.
JD Logistics plans to offer 609.2 million shares, about 10% of the company’s enlarged share capital, the filing showed. About 3% of the shares on offer will be earmarked for Hong Kong investors, while the rest will be available for investors from outside of the region.
The background: JD Logistics’ revenue rose 47% in 2020 to 73.4 billion yuan ($11.3 billion), according to its updated prospectus (link in Chinese) filed earlier this month. That gives it a roughly 2.7% share of a market whose main business is shipping millions of small packages from e-commerce sellers to buyers. The company gets more than half of its business from its parent, though third-party customers are rapidly growing and accounted for 46.6% of its total by the end of last year.
The company would have recorded its first-ever profit last year if not for a 3.3 billion yuan write-down related to conversions and redemptions of some of the company’s preferred stock, its updated prospectus showed. Excluding that item, JD Logistics would have reported a profit of 1.71 billion yuan last year on an adjusted basis, marking the first profitable year in its 14-year history.
Instead the firm’s net losses doubled to 4 billion yuan last year from 2.2 billion yuan in 2019.
Related: JD Logistics Gets Its Hong Kong IPO Back on Schedule
Yang Ge contributed to this report.
Contact reporter Timmy Shen (hongmingshen@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)
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