JD Technology's Planned Hong Kong IPO Could Raise Up to USD 2 bn

Financials Author: Tommy Mi Jan 25, 2022 10:40 AM (GMT+8)

JD Technology's long-awaited IPO is en route to become the group's fourth listing in Hong Kong in less than two years.

IPO

JD Technology, formerly the JD Digits and JD Finance, is the fintech unit of JD.com. The company is engaging with bankers to ready an IPO that could raise between USD 1 billion to USD 2 billion in Hong Kong.

JD Technology had withdrawn from a planned Shanghai Star Market IPO in 2021, primarily due to antitrust regulations in China's fintech sector. The company's IPO target will shrink JD Technology's valuation by 35% from its application submission to the Nasdaq-style Star Market to raise USD 3.1 billion. The IPO could set an example for other IPO candidates as policymakers set up clearer regulations for Chinese companies seeking to go public outside the mainland market.

If successful, JD Technology's listing would be the fourth by JD Group in the city in less than two years. JD.com, JD Health, and JD Logistics had completed listing in Hong Kong for USD 3.8 bn, USD 3.5 bn, and USD 3.1 bn, respectively. According to the IFR report, Bank of American, Citic Securities, and Haitong International are helping JD Technology's IPO.

JD formed an independent fintech unit, JD Finance, and it was renamed to JD Digits in 2018. In 2021, JD sold JD Cloud and its AI business to JD Digits for a valuation of USD 2.4 bn. Then the financial unit changed its name to JD Technology to include its newly acquired business line.