- JD +0.50%
Jingdong Industrials, the supply-chain technology arm of JD.com, aims to raise as much as HK$3.21 billion (US$412 million) through a Hong Kong stock offering, joining a wave of mainland Chinese companies tapping into the city's buoyant capital market.
The company said it would offer 211.21 million shares priced between HK$12.70 and HK$15.50 in its primary offering, with the final offer price to be determined on December 10, according to a filing with the Hong Kong stock exchange on Wednesday.
About 10 per cent of the H-share offering would be allocated to the public, with the remainder reserved for institutional investors, JD Industrials said. Retail investors can begin subscribing to shares on Wednesday, with the offer closing on December 8. Trading is expected to commence on December 11. The company may exercise an overallotment option to issue up to 31.68 million additional shares.
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JD Industrials' listing comes as investors and IPO hopefuls flock to Hong Kong's exchange, drawn by favourable valuations. The city's market capitalisation grew 37 per cent year on year to HK$48.1 trillion by the end of October, according to Hong Kong Exchanges and Clearing data.
Investors and listing hopefuls are flocking to Hong Kong's stock exchange, drawn by favourable valuations. Photo: Jelly Tse alt=Investors and listing hopefuls are flocking to Hong Kong's stock exchange, drawn by favourable valuations. Photo: Jelly Tse>
The growth has been powered by a string of billion-dollar mainland Chinese listings. Contemporary Amperex Technology raised US$5.24 billion in May, followed by Chery Automobile securing US$1.18 billion in September and Huawei-backed electric vehicle maker Seres Group raising US$1.8 billion in November.
The IPO boom has boosted stock market liquidity, with average daily turnover reaching HK$258.2 billion in the first 10 months of 2025, more than double compared to the same period last year.
JD Industrials said it planned to use 35 per cent of the net proceeds to enhance its industrial supply-chain capabilities over the next four to five years, while 25 per cent would go towards business expansion. The remainder would be used for acquisitions and working capital.
The deal has attracted seven cornerstone investors: London-based M&G Investments, CPE Investment, Anatole Investment, IvyRock Asset, CoreView Capital, Schonfeld Strategic Advisors and Burkehill Global Management. They have committed to subscribe for shares worth a total of US$170 million and agreed to hold them for at least six months after the listing.
Story continuesOperating as a stand-alone business unit of JD Group since 2017, JD Industrials offers a wide range of industrial products and digital supply-chain services in China. It had grown into the country's largest maintenance, repair and operations procurement service provider by transaction value, which was nearly three times larger than its nearest competitor, according to consultancy CIC.
JD.com will retain a 72 per cent stake after the listing. The company acknowledged in the filing that any negative development in its relationship with parent JD.com could "materially and adversely" affect its business and brand.
BofA Securities, UBS, Haitong International and Goldman Sachs are joint sponsors of the deal.
More to follow ...
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
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