China’s JD.com To Raise $4.1 Billion With Second Listing In Hong Kong

Chinese e-commerce giant JD.com is seeking to raise HK$31.4 billion ($4.05 billion) through a second listing in Hong Kong, joining fellow tech companies including Alibaba and NetEase in choosing the Asian financial hub as a foothold closer to home.

The e-commerce firm founded by billionaire Richard Liu Qiangdong will be offering 133 million shares at a maximum price of HK$236 each. JD.com said it plans to use the proceeds for enhancing its supply chain and investing in retail technologies such as inventory management and personalized advertising.

The proposed listing of the Beijing-based company comes hot on the heels of the second listing of Nasdaq-listed gaming firm NetEase, which announced on Sunday that it had priced its Hong Kong offering at HK$123 per share to raise $2.7 billion.

The offerings are taking place amid escalating tensions between Beijing and Washington. Lawmakers in the U.S. recently passed legislation that requires Chinese companies listed on American stock exchanges to submit audits for inspection by the Public Company Accounting Oversight Board, a non-profit body that oversees U.S. markets. Failure to provide the information could lead to the delisting of a company’s shares.

NetEase cited such risks in its Hong Kong prospectus. Last November, New York-listed Alibaba became the first of the U.S.-traded Chinese companies to debut in Hong Kong via a $13 billion through a secondary listing.

JD.com will announce the final price for its offering on Thursday. The company aims to begin trading on June 18, the day of its annual shopping bonanza. JD.com has recently reported strong growth momentum, thanks to its in-house logistics service that was up and running relatively early during the coronavirus outbreak.

JD.com said during an interview last month that the company was keen to grow orders of household products such as staples and fresh produces, a category that analysts say encourages repeat purchases and boosts customer loyalty.