A JD.com (NASDAQ:JD) spinoff may be in the works according to a couple of anonymous sources.
- This IPO would have the Chinese company taking its logistics division public.
- That follows the company spinning the business off into its own organization back in 2017.
- Sources close to the matter claim that the JD.com IPO spinoff would value the company at a minimum of $30 billion.
- It also looks like the company will be seeking to raise between $8 billion and $10 billion from the IPO.
- JD.com wants to use these funds to further expand the business’ warehouses.
- It may also use the cash to fund future acquisitions.
- The current goal appears to be securing banks to help assist with the IPO.
- If all goes well, this may take place during the second quarter of the year.
- After this, the JD.com IPO may move forward and take place sometime in the second half of the year.
- Due to the early nature of these talks, it’s possible that the numbers and timing of the JD.com IPO spinoff might change.
- Finer details of how the logistics division performs are still unknown.
- This is due to JD.com bundling those results in with other parts of its business.
- What we do know is that the unit the logistics division is in doesn’t turn a profit.
JD stock was up 6.46% as of Thursday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.