JD.com Secretly Submits Documents For Secondary Listing in Hong Kong
China’s second biggest e-commerce platform JD.com has allegedly submitted its listing documents in secret and plans to conduct a secondary listing in Hong Kong. The company may offer up to 5% of its shares, and is expected to listed as early as June, IFR reported, citing people familiar with the matter.
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According to Reuters, Bank of America and UBS are working with JD.com for the second listing in Hong Kong. The banks have previously also acted as lead underwriters for JD.com‘s US listing in 2014. Additionally, JD.com announced a $1 billion bond issue earlier this year which was also underwritten by the two banks.
In the wake of the recent Luckin Coffee fraud scandal, US-listed Chinese stocks are facing increased scrutiny, resulting in more companies eyeing Hong Kong Stock Exchange listings to attract more Chinese capital. According to IPO News, other fellow US-listed Chinese companies including Baidu, NetEase and Ctrip are also looking at a secondary listing in Hong Kong following Alibaba’s success.
As of press time, the US stock market value of JD.com is $64 billion (about 496 billion Hong Kong dollars).
