JD.com Subsidiary JDT to Raise $1-2 Billion in 2022 Hong Kong IPO

According to IFR on Monday, a subsidiary of Chinese e-commerce giant JD.com called JDT intends to carry out an IPO in Hong Kong this year, raising $1-2 billion. JDT refused to comment on the report.

JDT is cooperating with Bank of America, CITIC Securities and Haitong International Securities Group Limited for the listing, and may seek a preliminary financing round before the full IPO.

JD.com split its fintech department in 2013, and has changed its name at least twice in the past three years. Before 2018, the department was JD Finance, renamed JD Digits Technology in 2018 and JDT in 2021. JDT is committed to providing technical products and solutions across the whole value chain for enterprises, financial institutions, government bodies and customers in other fields.

In September 2020, JD Digits Technology submitted an application to raise 20 billion yuan ($3.16 billion) by listing on the Shanghai Sci-Tech Innovation Board (STAR Market). On April 2, 2021, it submitted application documents for a withdrawal from the Shanghai Stock Exchange.

According to the prospectus, the operating revenue of JD Digits Technology totalled 9.07 billion yuan, 13.616 billion yuan and 18.203 billion yuan in 2017, 2018 and 2019, respectively. Its revenue grew up to 10.327 billion yuan in the first half of 2020, higher than all revenue in 2017. From 2017 to the first half of 2020, the net profits/losses attributable to shareholders of the parent company was -3.82 billion yuan, 130 million yuan, 790 million yuan and -670 million yuan, respectively. The net profits turned positive in 2018.

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In November 2020, Chinese regulators stopped Ant Group from listing in both Shanghai and Hong Kong. Since then, officials have issued a series of new rules to govern the financial services provided by internet platforms and technology companies. This has changed the business environment of Ant Group, JDT and other fintech companies.