Chinese e-commerce giant JD.com on Thursday announced that its logistics arm has entered into a placing agreement, pursuant to which JD Logistics has agreed to issue 150,500,000 of its ordinary shares to a group of third-party investors for a total purchase price of $398 million in a placement.
Concurrently, JD.com, through its wholly-owned subsidiary (the “JD Entity”), has entered into a subscription agreement with JD Logistics, pursuant to which the JD Entity has agreed to subscribe for, and JD Logistics has agreed to issue, 261,400,000 ordinary shares of JD Logistics for a total purchase price of $692 million in cash.
Upon completion of the placement and subscription, JD.com, through the JD Entity, will maintain its holdings in JD Logistics at approximately 63.5%, and will continue to consolidate JD Logistics’ financial results into its statements.
Relying on its parent company’s e-commerce services, JD Logistics is serving over 300,000 enterprise customers. The company raised HK$24.1 billion ($3.1 billion) during its initial public offering last year.
According to its financial report, JD Logistics’ total revenue in 2021 reached 104.7 billion yuan ($16.44 billion). The company’s 2021 net loss nearly quadrupled to 15.7 billion yuan, from 4 billion yuan in 2020. On March 13, it decided to acquire 66.49% stake of Shanghai-listed Deppon Logistics with over 30,000 business stores, 140 warehouses and over 2,000 trunk lines in China.