JD.com, China’s second-biggest electronic commerce company, filed to raise $1.5 billion in a US IPO that would be the largest by a Chinese Internet company.
JD.com, founded in 1998 as Jingdong Century Trading Co, is reaping the benefits of the boom. It said in December it would top its 2013 sales target of 100 billion yuan ($16.5 billion).
With 35.8 million active customer accounts, JD.com posted a profit for the first nine months of 2013 after a string of losses, according to the IPO filing. It had 35.8 million active customer accounts and processed 211.7 million orders in the first nine months of 2013. Revenue surged 70 percent to $8 billion in the period.
Founder and CEO Richard Liu owns a 46% interest inJD.com, according to the filing. Alwaleed’s Kingdom Holding Co owns about 5%while Tiger Global Management LLC has 22%.
JD.com’s IPO filing did not reveal how many American depositary shares it planned to sell, the expected share price or the exchange on which the shares would trade. It said the $1.5 billion figure is a placeholder used to calculate fees and may change. The company said it would use the offering proceeds to buy more land rights, build new warehouses, expand its distribution and make acquisitions.
Chinese companies raised US$907 million by listing in the US last year, more than five times the 2012 total, according to the Asian Venture Capital Journal.
Source: China Daily