JD.com starts offering shares for $4bn secondary listing

JD.com is set to raise around $4 billion in shares as it prepares to list on the Hong Kong stock exchange in one of the biggest public offerings of 2020.

The Chinese ecommerce giant has offered 133 million shares to institutional investors, which is expected to raise $3.8 billion based on JD.com’s most recent closing price, according to the Financial Times.

However, this could increase to $4.3 billion if high demand for the shares leads bankers increase the amount of shares available via a “green shoe option”.

READ MORE: JD.com makes application for $3 billion secondary listing in Hong Kong despite COVID-19 downturn

Like its larger rival Alibaba, which completed which successfully raised around $11.3 billon (£8.8 billion) in its secondary public listing last year, JD.com currently trades on the US-based NASDAQ.

However increasing tensions between the US and China under the Trump administration have caused it, alongside other Chinese corporations including Baidu and NetEase, to seek markets closer to home.

This share sale represents around 4.3 per cent of its total outstanding shares, and the listing is due to go live on June 18.

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