During the recent World Economic Forum meeting, Richard Liu Qiangdong, the Chairman and Chief Executive Officer of JD.com disclosed that the company is preparing to take its logistics business public. Speaking to CNBC at the event, which was held in Davos, Switzerland, Richard Liu also hinted at the possibility of dual listing. Dual listing happens when a company has its share trading in more than one stock market. The implementation of the strategy will make the shares more liquid, and the investors will enjoy more flexibility.
According to Richard Liu, preparations are in top speed for the logistics subsidiary to list in either the Chinese mainland or Hong Kong. The choice of the Chinese mainland or Hong Kong is necessitated by the fact JD, which is the parent company is already listed on the Nasdaq. In 2014, JD.com listed American depository shares.
Additionally, JD.com has launched a fundraising round with the aim of raising a total of $2 billion. The round is targeted at its logistics business. According to Richard Liu, the company had initially planned to take the offer to the overseas market. Even though it is not precisely clear when the initial offer will take place, significant companies like Sequoia Capital China and Hillhouse Capital Group have taken an interest in the deal as lead investors in the round. Currently, JD.com wholly owns the logistics business.
Last year, Liu acquired a 4.3% stake in JD after the company spun off its finance arm for an estimated $2 billion. Earlier in September, Richard Liu told CNBC that the finance business was spun off to enable the expansion of the finance business. According to Liu, the move was prerequisite to taking the finance business public. However, he quickly added that the move was not imperative
JD.com is one of the largest e-commerce retailers in China. The company is known for its wide range of products, which includes more than 10 product categories on its online platform. The categories include computers and accessories, mobile phones and digital devices, home appliances, automobile and accessories, luxury goods, furniture, and many more. Over the years, the company has established d itself in the provision of high-quality, authentic products.
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