Chinese e-commerce giant JD.com‘s JD fintech arm is eyeing to go public as early as the end of 2022 after a first failed attempt earlier this year.
What Happened: JD Technology is looking for Beijing’s market regulators’ approval to go public in Hong Kong, people with direct knowledge of the matter told Reuters.
The listing of the fintech arm of JD.com will be one of the biggest initial public offerings of a Chinese company in Hong Kong since a sweeping regulatory crackdown by Xi Jinping‘s government sent shock waves through the tech industry in China two years ago.
The renewed IPO plan comes as the Chinese regulatory authorities softened their edges on tech regulatory crackdown in order to boost the economy that the Zero-Covid policies have hurt.
The size of its IPO is yet to be decided but is expected to be smaller than its previous $2 billion target amid weak demand for new share sales globally, one of the sources told the publication. If the IPO gets regulators’ approval, its timing remains unclear and dependent on market conditions, the report noted.
There have been about $10.3 billion worth of IPOs and second listings in Hong Kong so far in 2022, according to Refinitiv data, and just over a quarter of the $37.7 billion of deals done during the same period last year.
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