JD.com Targets $500M Hong Kong IPO For Supply Chain Unit JingDong Industrials: Report

• The Chinese e-commerce company is moving forward with the IPO of JingDong, after gaining China’s approval two months ago.
• JingDong manages industrial supply chain and procurement services for JD.com’s business-to-business customers, including sourcing, warehousing, and logistics solutions.
• JD spun off JingDong in 2023 and currently holds a 79% stake.

JD.com is evaluating listing its supply chain technology unit, JingDong Industrials, on the Hong Kong Stock Exchange in the coming weeks, according to reports in Reuters and Bloomberg, citing unnamed sources.

Bloomberg reported that the initial public offering may raise $500 million. U.S.-listed shares of JD dropped 0.3% in early premarket trading on Monday. 

Long Road To JingDong IPO

Jingdong has started meeting with potential investors, according to reports. The company first filed for an IPO in March 2023, but got the approval from China’s securities regulator only in September this year.

The unit plans to use the proceeds to boost its industrial supply-chain capabilities through expansion, mergers and acquisitions, and the adoption of artificial-intelligence (AI) technologies, according to the paperwork reviewed by Bloomberg.

JingDong manages industrial supply chain and procurement services for JD.com’s business-to-business customers, including sourcing, warehousing, and logistics solutions.

Retail’s View On JD Extremely Bearish 

JD.com’s shares have fallen about 18% in Hong Kong this year, compared with a 27% gain for the city’s stock benchmark Hang Seng Index. The U.S. shares, JD, are down 15.2% year-to-date.

Tech peers like Alibaba and Baidu have gained handsomely, with their U.S. shares rising 82.6% and 33.4%, respectively, this year.

On Stocktwits, the retail sentiment for JD was unchanged at ‘extremely bearish’ since Friday.

“The quickest of glances shows a chronic underperformer in a difficult industry. Sell it, Delete it from your watchlist, and try to forget you ever heard of it,” commented one user.

JD spun off JingDong in 2023 and currently holds a 79% stake in the company, according to Reuters.

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