JD.com’s logistics division has held preliminary discussions with a number of banks about a potential overseas IPO that could raise $8-10 billion, according to reuters sources familiar with the matter. JD’s logistics division is looking for a valuation of at least $30bn. JD.com will select the bank for an IPO in the second quarter of next year and will use the money it raises for warehouse expansion and acquisitions, according to people familiar with the matter. In addition, the IPO is likely to take place in the second half of 2020.
JD.com declined to comment on the IPO.
People familiar with the matter said the listing could take place in Hong Kong or New York, although the exact time and place has not yet been finalised and the exact funding figures may change.
In 2017, JD.com spun off its logistics division as an independent entity and then opened its distribution and warehousing services to third-party companies.
In 2018, JD.com raised $2.5 billion in a round of financing, with investors including Gaosheng Capital, Sequoia Capital, China Merchants Group, Tencent and Chinese Shou. After the financing, the company was valued at about $13.5 billion.
As of September 30 this year, JD.com’s logistics division operated more than 650 warehouses with a total construction area of about 16 million square meters.