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JD Logistics to raise $3.16 billion in Hong Kong IPO -sources

JD Logistics to raise $3.16 billion in Hong Kong IPO -sources
JD Logistics to raise $3.16 billion in Hong Kong IPO -sources   -   Copyright  (c) Copyright Thomson Reuters 2021. Click For Restrictions - https://agency.reuters.com/en/copyright.html   -  
By Reuters

<p><body> <p>By Scott Murdoch</p> <p><span class="caps">HONG</span> <span class="caps">KONG</span> (Reuters) -JD Logistics Inc has indicated it will price shares at HK$40.36 ($5.20), towards the lower end of its flagged range, to raise $3.16 billion in a Hong Kong initial public offering (<span class="caps">IPO</span>), two people with direct knowledge of the matter said.</p> <p>The people declined to be identified as the information has not yet been made public. </p> <p>JD Logistics, spun off from e-commerce major JD.com Inc, did not immediately reply to a request for comment.</p> <p>It had set a price range of HK$39.36 to HK$43.36 per share which would have raised $3.4 billion at the top end.</p> <p>Pricing of the deal has been closely watched as a barometer of whether Hong Kong’s red-hot <span class="caps">IPO</span> market has been impacted by the recent global markets volatility which has emerged on the prospect of accelerating inflation in the world’s economies.</p> <p>JD Logistics sold 609.1 million shares in a deal which would be Hong Kong’s second-largest <span class="caps">IPO</span> this year following Kuaishou Technology raising $5.4 billion in January.</p> <p>Kuaishou priced its shares at the peak of its range and another JD.com spin off, JD Health International Inc, was also at the top when it listed in December.</p> <p>JD Logistics sold 10% of its total shares in the transaction which, at the bottom of the price range, would value the company at $31.6 billion. That would be below the target of $34 billion had the shares priced at the top of the range.</p> <p>An over-allotment option, or so-called greenshoe, exists to sell a further 91 million shares within 30 days of the shares starting trade.</p> <p>JD Logistics is due to debut on the Hong Kong Stock Exchange on May 28.</p> <p>JD.com spun off its logistics unit into a standalone entity in 2017 and then opened up its delivery and warehousing services to third-party companies.</p> <p>The logistics company recorded 22.4 billion yuan ($3.48 billion) in revenue in the first quarter of 2021, up 64.1% from the same period in 2020.</p> <p>Its gross profit for the quarter reached 230.7 million yuan, down 72.7% from the same time last year, which it blamed on the impact of the novel coronavirus pandemic as well as adding 60,000 workers to its headcount during the year.</p> <p>($1 = 7.7621 Hong Kong dollars)</p> <p>($1 = 6.4341 Chinese yuan)</p> <p> (Reporting by Scott Murdoch in Hong Kong; Editing by Tom Hogue and Christopher Cushing)</p> </body></p>