JD.com Inc.’s
property and industrials units are targeting to raise about $1 billion each in Hong Kong initial public offerings, people familiar with the matter said, adding to the supply of potentially sizable deals that could hit the market this year.
The Chinese e-commerce giant said on Thursday that it is planning to spin off Jingdong Property Inc. and Jingdong Industrials Inc. by listing both companies in the city.
JD.com plans to hold on to about 50% of each company after they are public. Its Nasdaq-listed American depositary receipts jumped 7.8% in Thursday trading to $44.40, while its Hong Kong-listed shares gained 7% in early Friday trading.
JD.com said it hasn’t finalized the size and structure of the offerings. Both companies have filed preliminary listing documents with Hong Kong’s exchange, which said the spinoffs can proceed.
The two units’ plans to offer shares follow those of rival e-commerce giant Alibaba Group Holding Ltd. to split itself into six independently run companies that could seek separate IPOs.
JD.com has previously spun off other businesses through public listings. They include
JD Health International Inc.,
a telemedicine provider and online pharmacy business that raised $3.5 billion in a Hong Kong initial public offering in late 2020. The other is
which raised more than $3.5 billion when it went public in the city in mid-2021.
JD Property, which started operations in 2007, develops and manages assets such as logistics and business parks, mostly in China. It posted a profit of $323.1 million on revenue of $337.4 million in 2022.
JD Industrials is a supply-chain technology and service provider. The unit, which JD.com started in 2017, generated a loss of $184.7 million on revenue of $2.06 billion last year.
The…
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