E-commerce giant JD chasing secondary listing in Hong Kong stock exchange: Bloomberg

China’s second largest e-commerce company JD.com has filed confidentially to list its shares in Hong Kong hoping to raise at least USD2 billion, a report said on Wednesday.

JD’s listing could come as soon as the second half of the year, Bloomberg News said, citing sources with knowledge of the planned deal.

The move comes as China’s major cities gradually return to some semblance of normality after the deadly coronavirus outbreak brought the economy to a halt.

JD.com raised USD1.78 billion when it listed on the Nasdaq in New York in 2014 and now has a market capitalisation of USD64 billion.

The group did not respond to a request for comment on Bloomberg’s report.

Like many e-commerce giants, JD looks set to have weathered the worst of the global pandemic’s impact as demand soars for home deliveries to people locked down to prevent its spread.

In March the company said net revenue of the first quarter of 2020 was expected to grow at least 10 percent year-on-year.

“Our leading supply chain and logistics network have been called upon to address unmet needs across China,” billionaire founder Richard Liu said in a statement attached to its annual results.

The potential listing would help the company better compete with e-commerce rivals including Chinese titan Alibaba and Amazon.

Alibaba, which is also traded in New York, raised USD12.9 billion in a secondary listing on Hong Kong’s stock exchange in November, making it the city’s largest initial public offering since insurance giant AIA raised USD20.5 billion in 2010. – AFP

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