JD.com’s logistics arm, JD Logistics, is reportedly in discussions with banks regarding a potential IPO worth between $8 to $10 billion. The Chinese e-commerce giant aims to achieve a valuation of at least $30 billion for its logistics unit, which was spun off into a standalone entity in 2017. Since then, JD Logistics has been offering warehousing and delivery services to third-party companies, showcasing its dedication to expansion and growth in the industry.
Sources familiar with the situation suggest that JD Logistics will select banks for the IPO process in the second quarter of 2020. The capital raised from the IPO will be used for enlarging warehouse facilities and exploring acquisition opportunities. The IPO itself is anticipated to occur in the latter half of 2020, with potential listings on exchanges in Hong Kong or New York.
While JD.com has refrained from providing comments on the subject, the progression of JD Logistics is evident as it fortifies its foothold in the market. With a massive network of over 650 warehouses and a substantial gross floor area of approximately 16 million square meters as of September 30, JD Logistics commands a significant presence in China’s warehousing sector.
In 2018, JD Logistics secured $2.5 billion from investors like Hillhouse Capital Group, Sequoia Capital China, and Tencent Holdings, among others, which propelled its valuation to around $13.5 billion. The decision to go public aligns with JD Logistics’ ambition to emerge as a premier logistics provider in China. This potential IPO holds the promise of being a pivotal milestone for JD.com, amplifying its standing in the fiercely competitive e-commerce and logistics landscape.
References:
1. JD.com Logistics Unit Seeking $8 Billion to $10 Billion U.S. IPO
2. JD.com Considering Listing its Logistics Arm in Hong Kong
