JD.com Shares Pop as Company Makes Debut in Hong Kong

Chinese e-commerce giant JD.com saw its shares head higher on their first day of trading in Hong Kong.
The company made its Hong Kong debut on Wednesday and priced its shares for the secondary listing at 226.00 Hong Kong dollars each.

It was in 2019 that rival Alibaba carried out a secondary listing in Hong Kong, followed by gaming firm NetEase earlier this month.

JD.com closed 3.5% higher on their first day of trading.

Charles Li, chief executive officer of Hong Kong Exchanges and Clearing, told CNBC on Wednesday, that there is a “healthy” pipeline of Chinese firms coming to list in Hong Kong.

JD.com has issued 133,000,000 new Class A ordinary shares as part of its Hong Kong offering. The company said the gross proceeds will total approximately 30.05 billion Hong Kong dollars ($3.87 billion).

JD.com plans to use the money raises to “invest in key supply chain based technology initiatives to further enhance customer experience while improving operating efficiency. The supply chain based technologies can be applied to the Company’s key business operations including retail, logistics, and customer engagement.”

JD.com has also given the investment bank underwriting the secondary listing a so-called over-allotment option. That means they can issue up to an additional 19,950,000 new Class A ordinary shares if there is demand. These shares can be exercised from June 11 until 30 days thereafter.

Disclaimer: We have no position in JD.Com Inc. (NASDAQ: JD) and have not been compensated for this article.