Please ensure Javascript is enabled for purposes of website accessibility Looks to Raise $3.4 Billion in Logistics IPO

By Rich Duprey - May 17, 2021 at 10:00AM

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

It would be the second biggest Hong Kong listing this year, but less than what the e-commerce giant originally planned.

JD Logistics, the transportation and logistics arm of (JD 2.60%), is set to hit the market this week in an initial public offering that could see it fetch $3.4 billion.

The IPO would be the second biggest listing this year in Hong Kong behind the launch of a Chinese viral-video app, but the Financial Times reports the offering price is about 25% lower than what was originally hoped for.

JD Logistics truck

JD Logistics trucks. Image source:

According to the Times, JD Logistics is looking to sell 609 million shares for between $5.07 and $5.58 per share when it sets the terms on Friday, with an anticipated trading date beginning on May 28. 

As e-commerce took shape and grew in China, created the logistics division in 2007 before spinning it off into a stand-alone business in 2017. The transportation and delivery business served to separate JD from its larger rival Alibaba Group Holding, which relies upon third-party delivery operators for its logistics function, but only those in which it owns a stake. has been trying to pare down its far-flung operations to raise cash by spinning off various units into separately traded public companies. Last year, JD Health had its IPO, and the parent company had planned to spin off JD Digits, its fintech unit, in an offering that sought to raise $2.9 billion. But the listing lapsed as China tightened regulatory oversight of the financial sector.

China's largest delivery company, SF Holding, suffered a surprise quarterly loss, which led to paring back expectations for JD Logistics.

Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alibaba Group Holding Ltd. and The Motley Fool has a disclosure policy.

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.
$56.94 (2.60%) $1.44
Alibaba Group Holding Limited Stock Quote
Alibaba Group Holding Limited
$94.87 (2.64%) $2.44

*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 analyst team.

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 08/12/2022.

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.