JD.com financial subsidiary seeks Beijing’s approval for an HK IPO by year’s end, – sources.
Zhu, Murdoch, and Wu Hongkong/Sydney (AFP) After a failed attempt earlier this year, the fintech unit of Chinese e-commerce business JD (NASDAQ: JD).Com hopes to list in Hong Kong by the end of the year, according to three sources.
Since China’s government cracked down on capital raising outside of mainland China two years ago, JD Technology’s IPO would be one of the largest Chinese listings in Hong Kong.
Chinese officials have eased up on cracking down on tech companies in recent months as they seek to reinvigorate an economy damaged by COVID-19.
JD Tech’s IPO could be smaller than its earlier $2 billion goal since demand for new shares is sluggish, a source said. If approved, the listing’s timeline depends on market conditions.
According to Refinitiv statistics, Hong Kong has seen $10.3 billion in IPOs and second listings so far in 2022, barely over a quarter of the $37.7 billion done during the same time last year.
One source indicated banks resumed floating activity in mid-October. The people who knew of the IPO plans declined to be identified.
Reuters reported in May that JD Tech’s original intention for a Hong Kong IPO was scrapped due to regulatory issues.
JD.com didn’t comment.
JD Tech, JD.Com’s finance, cloud, and AI unit, needs CSRC approval to list offshore, including in Chinese-controlled Hong Kong.
According to the CSRC’s website, it originally requested an offshore listing in late January.
The CSRC’s international department, the key regulator for offshore listings, recently reviewed JD Tech’s application and contacted other authorities to get their perspectives on its business, a source said.
The CSRC didn’t comment immediately.
JD Tech, which was spun off as a separate unit in mid-2017, had appointed several banks to work on the IPO, but progress had slowed because it failed to win regulatory approval the first time.
Ant Group’s consumer finance subsidiary will more than double its registered capital to $2.62 billion, helping JD Tech move closer to the end of its regulatory-driven makeover.
