Skip to main content's Logistics Unit Meets With Banks for IPO to Raise Up to $10 Billion's logistics unit has held discussions with banks about a potential overseas IPO that could raise $8 billion to $10 billion, a report says.
  • Author:
  • Publish date:

JD Logistics, the logistics division of (JD) - Get Free Report, has held discussions with banks about a potential overseas initial public offering that could raise $8 billion to $10 billion, Reuters reported.

Shares of the Chinese e-commerce company were rising 2.7% to $36.26.

JD Logistics is targeting a valuation of at least $30 billion, Reuters said, citing people with direct knowledge of the matter.

The unit is expected to select banks for the initial public offering in the second quarter of 2020 and will use the funds for warehouse expansion and potential acquisition purposes.

The float could take place in the second half of next year.

The listing could happen in Hong Kong or New York, although a timetable and venue have not been finalized and the numbers are subject to changes, Reuters reported.

In 2018, JD Logistics raised $2.5 billion in a funding round from investors including Hillhouse Capital Group, Sequoia Capital China, China Merchants Group, Tencent Holdings, and China Life Insurance, according to Reuters.

The company's valuation reached about $13.5 billion after the fundraising.

JD Logistics became a standalone subsidiary in April 2017. opened up the unit's delivery and warehousing services to third-party companies. Logistics operates a network of more than 650 warehouses with a total of roughly 16 million square meters, including warehouse space managed under the JD Logistics Open Warehouse Platform, according to the company's website.

Last month,, a key rival to Alibaba (BABA) - Get Free Report, posted stronger-than-expected third-quarter earnings as product sales from its online platform neared $17 billion.

In the U.S., is backed by both Walmart (WMT) - Get Free Report and Alphabet (GOOGL) - Get Free Report.