JD.com’s supply chain unit, JD Logistics, the big Chinese internet retailer, raised more than $ 3.1 billion on a stock listing in Hong Kong on Friday, the latest Chinese company to raise money for the city’s stock in a record-breaking year. is. transaction.
Investors were looking at the initial public offering to find out if there is still a hunger for Chinese Internet companies to get off to a great start, when the technology industry faces intense regulatory scrutiny from Beijing.
The investigation did not bother traders, who raised the stock by 18 percent during its first day trading on the Hong Kong Stock Exchange. But the stock surpassed most of those gains during the session, and closed at $ 41.70 Hong Kong, or $ 5.37, up 3.3 percent from its listing price.
Offering JD Logistics, which helps JD.com provide same-day and next-day delivery to thousands of counties and towns in China, the company is valued at $ 4 billion, making it the third-largest share offering in Hong Kong. year.
Beijing has imposed record fines on some of China’s largest Internet companies, such as Alibaba, as regulators try to tame the power and anti-competitive nature of the country’s most popular and ubiquitous technology companies.
On Friday, JD Logistics chief executive Yu Rui addressed the regulatory inquiry and said the company would use the funds raised to improve its ability to serve smaller cities and pursue overseas markets.
Some of the company’s largest shareholders are Blackstone, a Wall Street private equity firm; Sovereign Wealth Fund of Temasek, Singapore; And hedge funds Tiger Global and Oaktree.