China's JD.Com Logistics Arm Looking To Raise $10B IPO: Report

Chinese e-commerce giant JD.Com Inc.’s JD logistics arm is seeking to raise between $8 billion to $10 billion in a potential initial public offering, Reuters reported on Monday.

What Happened

JD Logistics, which became a separate entity from the larger e-commerce company in 2017, is in talks with multiple banks about the IPO, people close to the matter told Reuters.

The company valuation goal is at least $30 billion, according to the sources.

The logistics arm is expected to choose its underwriters by the second quarter next year, and could go public as soon as the third quarter, Reuters reported. The listing could happen either in Hong Kong or New York.

JD logistics previously said that it raised $215 million in a private funding round in June and another $2.5 billion last year.

The division's parent company went public in New York in 2014, raising $1.78 billion. 

The company listed its shares on the Nasdaq Stock Market, in what was the biggest listing of a Chinese company at any U.S. stock market.

Competitor Alibaba Group Holdings Ltd. BABA followed the company, listing at the New York Stock Exchange, after raising $25.4 billion in what was the world’s largest IPO at the time.

Price Action

JD.com’s shares closed 1.52% higher at $35.31 on Friday.