Please ensure Javascript is enabled for purposes of website accessibility to Spin Off Logistics Unit via Hong Kong Listing

By Eric Volkman - Feb 16, 2021 at 5:51PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The announcement comes less than three months after the company's healthcare subsidiary was very successfully floated on the Asian exchange.

Ever-ambitious Chinese tech giant (JD -1.16%) is planning another spin-off of a large business unit. In a regulatory document filed on Tuesday, the company revealed that it has applied to float shares of its JD Logistics arm on the Hong Kong Stock Exchange. In the likely event that this is accepted, JD Logistics' stock would list on the Main Board of that exchange.

Additionally, will float JD Logistics shares on another exchange or exchanges in what it is calling a "global offering." It did not say where this listing or listings would occur. It also did not specify how many shares would be sold either in Hong Kong or in total, nor provide a figure for how much capital it aims to raise.

Worker pulling a box in a factory.

Image source: Getty Images.

At the moment, holds just over 79% of JD Logistics, which was incorporated in 2012. The former quoted research that showed JD Logistics holds the No. 1 position in terms of revenue on the integrated supply chain service market in China. As of the end of September 2020, the unit operated over 800 warehouses throughout the country.

This won't be the first time is tapping Hong Kong, Asia's No. 3 stock exchange, for capital. Last December, in a similar move, it floated its JD Health subsidiary in the enclave. The massive issue, which raised the equivalent of around $3.5 billion, was the largest debut on that market in 2020.

Logistics is a hot segment around the world, as the coronavirus pandemic has dramatically increased global demand for delivery services due to mandatory and voluntary stay-in-place measures. It's very possible that JD Logistics will make as much of a splash, if not more so, than JD Health did on its listing.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned, Inc. Stock Quote, Inc.
$52.17 (-1.16%) $0.61

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/22/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.