Market Overview Raises $3.87B In Hong Kong Listing: Report

Share: Raises $3.87B In Hong Kong Listing: Report

JD.Com Inc's (NASDAQ: JD) Hong Kong IPO has raised about $3.9 billion, making it the biggest of the listings on the exchange so far this year.

What Happened: Chinese online retailer, which is already listed on the New York Stock Exchange, opted for a secondary listing closer home and had earlier indicated plans to sell 133 million shares.

The shares were priced at 226 Hong Kong dollars/share, or $29.16 per share, raising about $3.88 billion in the process, Reuters reported, citing two people with direct knowledge of the matter.

With each ADS of representing two ordinary shares, the Hong Kong IPO pricing of $29.16 per share or $58.32 per ADS is at a discount to the $60.70 at which the ADSs closed Wednesday. shares will begin trading on the Hong Kong exchange June 18.

Why It Matters: The move to a secondary listing is keeping in line with the recent trend of Chinese companies hedging against the risk of a potential U.S. delisting amid escalating tensions between the countries.

Additionally, the U.S. has not taken kindly to the questionable reporting standards of domestically listed Chinese companies, especially after the unearthing of fraud in some cases. 

Chinese online gaming company NetEase Inc (NASDAQ: NTES), which undertook an IPO in Hong Kong, saw its shares rise about 5.7% in the debut session Thursday.

This is despite a global sell-off that was triggered by the U.S. Fed's muted outlook and fears of a potential second wave of coronavirus infections.

At last check, U.S-listed shares were slipping by 5.42% to $57.41. 

Related Links: Analysts Buy Into E-Commerce Giant's Consistent Execution Amid Uncertain Times Makes Drone Deliveries In China As Covid-19 Virus Paralyzes Country


Related Articles (JD)

View Comments and Join the Discussion!

Posted-In: China ReutersNews IPOs Global Media Best of Benzinga