Supply chain and logistics services provider JD Logistics is said to be preparing for an initial public offering (IPO) next year with an estimated valuation of $40 billion, according to Reuter’s International Financing Review (IFR.)
JD Logistics refused to comment on the issue as of press time.
Once the IPO is confirmed, however, the logistics unit of JD.com will become the third JD subsidiary to be ready for trading on the public market this year, following the online healthcare arm JD Health and the fintech sector JD Digits.
JD Health passed the Hong Kong listing hearing on Nov. 15 while JD Digits has submitted its prospectus to the STAR Market in Shanghai. Additionally, the leading online retailer on June 18 made a secondary listing in Hong Kong, kicking off the company’s grand IPO plan.
As a part of the four unicorn subsidiary businesses of JD.com, the courier unit operated over 800 warehouses in the last quarter ended Sept. 30, covering a total gross floor area of about 20 million square meters, according to JD’s unaudited financial report of the third quarter of 2020.
The unit, together with other services, generated $1.5 billion in revenue in the last three months, making up about 5.8% of the e-commerce giant’s overall income of the past quarter.
Back in December 2019, Reuters reported that JD Logistics had held early discussions about a potential overseas IPO which could raise approximately $8 billion to $10 billion, citing two people with direct knowledge of the matter.
JD Logistics’ last round of financing took place in February 2018, raising $2.5 billion and backed by investors including Hillhouse Capital, Sequoia China, China Merchants Group, Tencent, and China Life Insurance.
After the last financing round, JD Logistics reached a valuation at approximately $13.5 billion, with JD Group holding 81.4% of the unit’s shares.