JD Logistics, a unit of Chinese e-commerce giant JD.com, has held early talks with banks about a potential overseas IPO that could raise US$8-10 billion, Reuters reports, citing people with knowledge of the matter.
JD Logistics is targeting a valuation of at least US$30 billion, the sources were quoted as saying.
The unit is expected to select banks for the initial public offering (IPO) in the second quarter of next year and will use the funds for warehouse expansion and potential acquisition purposes, according to the report.
The float could take place in the second half of 2020.
The listing could happen in Hong Kong or New York, although a timetable and venue have not been finalized and the numbers are subject to changes, according to the Reuters sources.
JD.com spun off its logistics unit into a standalone entity in 2017, and then opened up the latter’s delivery and warehousing services to third-party companies.
In 2018, the division raised US$2.5 billion in a funding round from investors that included Hillhouse Capital Group, Sequoia Capital China, China Merchants Group, Tencent Holdings and China Life Insurance.
The company’s valuation reached about $13.5 billion after the fundraising.
As of Sept. 30, JD Logistics operated more than 650 warehouses, which covered an aggregate gross floor area of approximately 16 million square meters.
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