JD.com IPO: 13 Things to Know About a Potential Spin-Off

The IPO would be for its logistics business

A JD.com (NASDAQ:JD) spinoff may be in the works according to a couple of anonymous sources.

JD.com IPO: 13 Things to Know About a Potential Spin-Off
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Here’s what investors need to know about a possible JD.com IPO.

  • 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.


Article printed from InvestorPlace Media, https://investorplace.com/2020/01/jd-com-ipo-things-to-know/.

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