China's e-commerce giant JD.com (NASDAQ:JD) is looking to raise approximately $3 billion via a secondary listing in the Hong Kong Stock Exchange, according to a Reuters report. There was, however, no confirmation from the company's management about this secondary listing.
JD.com is following in Alibaba's footsteps to list its shares in Hong Kong. Last November, Alibaba raised close to $13 billion and began trading on the Hong Kong stock market. JD shares may list in Hong Kong as soon as June this year.
This will be the largest equity market transaction on the Hong Kong Stock Exchange so far in 2020.
Hong Kong has been one of the most volatile equity markets in the world in the last 12 months. The region has experienced unpredictability first due to protests against China and then due to the COVID-19 pandemic.
JD.com's listing will give investors in Hong Kong and China a chance to invest in one of the fastest-growing e-commerce stocks in the world. JD.com is often compared to e-commerce giant Amazon and has managed to grow at a fast clip over the years.With annual revenue of approximately $80 billion in 2019, JD.com is a technology heavyweight.
The upcoming listing will help JD increase its brand value in Asia and other international regions, supporting continued growth.