JD Logistics raised USD 3.1 billion on Friday in the second-biggest IPO in Hong Kong this year. The size of JD Logistics’ raise was behind only Kuaishou, which took in USD 5.3 billion in February. The courier, an affiliate of e-commerce giant JD.com, saw its shares rise 14% at the open, reaching a market cap of USD 36 billion.
Spun off from JD.com in 2018, JD Logistics grew its total revenue from USD 5.9 billion in 2018 to USD 11.5 billion in 2020, according to the prospectus. Its losses, however, widened to USD 633 million last year due to an increase in infrastructure expenses in China’s smaller cities.
JD.com and other important affiliates of the group contributed to 53.9% of JD Logistics’ revenue in 2020, down from 80% in 2018. The number of external customers rose to nearly 40,000, said the company in its prospectus. In the short term, the firm’s development heavily relies on an increase in JD.com’s gross merchandise volume, 36Kr said.
JD Logistics is the second JD.com spinoff to list on the Hong Kong Stock Exchange after JD Health, which went public in December 2020.
Aaron Zhang contributed to this article.
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.