(Bloomberg) — JD Logistics Inc. surged in Hong Kong’s gray market trading, after its initial public offering was more than 700 times subscribed by retail investors in the city’s second-largest float this year.

Shares of the delivery arm of Chinese e-commerce giant JD.com Inc. rose to as high as HK$51.95 on an over-the-counter platform operated by Phillip Securities Group ahead of its Friday debut. That marks a 29% gain from its offering price of HK$40.36, which was at the lower end of its marketed range.

The retail tranche of the company’s $3.2 billion share sale was 715.6 times subscribed, making it the third most popular IPO in the city with a size larger than $1 billion, after offerings by Kuaishou Technology and Nongfu Spring Co. The Chinese video-streaming platform operator surged 161% while the bottled water producer jumped 54% on their debuts. JD Logistics’ institutional offer was about 11 times subscribed.

JD Logistics’ stock offering comes as sentiment in the city’s IPO market has cooled with the benchmark Hang Seng slumping into a correction in March. About half of stocks that debuted between March and May fell on their first day of trade, while April saw just three listings, the least in nine months, Bloomberg-compiled data show.

JD Logistics attracted seven cornerstone investors to its offering, including SoftBank Vision Fund, Temasek Holdings Pte, Blackstone Group Inc. and Tiger Global.

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