• JD.com Inc’s (NASDAQ: JD) delivery arm, JD Logistics Inc, has raised around $3.16 billion from its Hong Kong initial public offering (IPO) at $5.2 per share towards the lower end of its indicated range, symbolizing investor caution, Reuters reports.

  • The IPO valued JD Logistics at $31 billion, below the initially targeted valuation of $40 billion. It would have raised .4 billion under the indicated price range of HK$39.36 – HK$43.36.

  • JD Logistics will start trading on the Hong Kong Stock Exchange on May 28.

  • The investor demand in Hong Kong’s IPO market has lost steam due to concerns surrounding inflation and weakness in global stocks, Bloomberg reports. The IPO marks China’s second-largest listing in 2021 after short video company Kuaishou Technology’s $6.2 billion February float.

  • JD.com had spun off its logistics unit into a standalone entity in 2017 and launched its delivery and warehousing services to third-party companies. Still, it owned around 79% of JD Logistics.

  • Price action: JD shares traded higher by 1.22% at $74.6 in the premarket session on the last check Friday.

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