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JD.Com’s logistics unit, taps banks for a potential $8-$10 billion in IPO: sources

HONG KONG (reuters) – The logistics unit of the Chinese e-commerce company JD.com Inc. (JD).(O) has held early talks with banks about a possible new overseas IPO that could raise $8 billion to $ 10 billion, two people with direct knowledge of the matter told Reuters.

FILE PHOTO: the Delivery workers are sorting packages, in addition to the vehicles, GROUND Logistics, the logistics unit of the JD.com in the middle of the year, the online shopping festival, 618, in Beijing, China, June 18, 2019. Song, Yanxin/Qianlong.com, via REUTERS/File Photo

JD Logistics has been focused on a valuation of at least us $30 billion, according to the people, who declined to be named as the information is kept confidential.

The unit is expected to select the banks for the initial public offering (IPO) in the second quarter of next year, and the funds will be used for the extension to the warehouse and the potential for acquisition purposes, as a single person, he said.

The float could be carried out in the second half of the year 2020, the people said.

JD.com the second-largest Chinese e-commerce company Alibaba (BABA).(N), declined to comment.

The list could be done in Hong Kong or New York, even though a time schedule and location have not yet been completed, and the numbers are subject to change, the people said.

JD.com a spin-off of the logistics unit is in a stand-alone entity in march of 2017, and then it opened up to the final delivery, and storage services to third parties.

In 2018, the division increased to $2.5 billion in a funding round from investors, including Hillhouse Capital Group, Sequoia Capital China, China Merchants Group, Tencent Holdings (0700.HK) and China Life Insurance (601628.- SS).

The valuation of the company at about $13.5 billion, after the fund-raising.

As Of Sept. 30, the GROUND Logistics of the employee is more than 650 stores, with a total gross floor area of approximately 16 million square feet.

The company is one of the best players in China in terms of storage space.

Reporting by Kane Wu and Julie Zhu in Hong Kong; additional reporting by Yang, Yingzhi at the Beijing; Editing by Anshuman Daga and Himani sarkar

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