Chinese online retailer JD.com in $1.8b IPO
Chinese online retailer JD.com has raised $1.8 billion after its US IPO priced at a higher level than anticipated.
The company sold 93.7 million American Depositary Shares at $19 apiece, above the indicated range of $16-18, valuing the company at more than $25 billion. The sale - comprising 69 million new shares with the rest sold by existing stockholders - was said to be 15 times subscribed.
Selling shareholders, including JD.com's founder Richard Liu, Tiger Global Management, DST Advisors, Hillhouse Capital Management and Capital Today, will receive about a quarter of the IPO proceeds.
Tiger Global will sell 13.35 million shares, reducing its stake from 18.1% to 15.8%. DST's stake will drop from 9.2% to 8%, while Capital Today's holding falls from 7.8% to 6.8%. Two investment vehicles managed by Hillhouse Capital Management will see their combined interest fall from 13% to 11.3%.
Due to the dual shareholding structure, Liu retains control of the business despite owning a minority stake.
Formerly known as 360Buy and Jingdong.com, the company has yet to turn a profit. Its net loss fell to RMB1.3 billion ($208 million) last year from RMB1.7 billion in 2012. Revenue jumped from RMB41.4 billion in 2012 to RMB69.3 billion in 2013.
The 10-year-old company has raised more than $1.7 billion in VC and PE funding in the last three years. Investors include Kingdom Holding, an investment company controlled by Prince Alwaleed bin Talal, a Saudi Arabian billionaire, and Ontario Teachers' Pension Plan.
JD.com also sold shares to Tencent Holdings, Chinese e-commerce giant Alibaba Group's major rival, after forging a strategic partnership with the company ahead of the IPO.
The company claims to be the second-largest B2C e-commerce company in China after Alibaba, with an 18.3% market share based on transaction volume in 2013.
Bank of America Merril Lynch and UBS were lead underwriters for the offering.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.