Benzinga | May 17, 2021 08:47AM EDT

JD.com's Logistics Arm Aims To Raise $3.4B From Hong Kong IPO

* JD.com Inc (NASDAQ: JD) delivery arm, JD Logistics, has tapped China's pandemic-induced online shopping boom to raise around $3.4 billion (HK$26.4 billion) from its Hong Kong initial public offering. It offers to sell 609.2 million shares for HK$39.36 and HK$43.36 per share, Bloomberg reports.

* JD Logistics is set to be priced on May 21 and begin trading on May 28.

* The IPO could value JD Logistics at up to $34 billion, the Wall Street Journal reports.

* JD.com relies on JD Logistics to store and deliver groceries, clothes, home appliances, and electronic gadgets across China. JD.com used speedy delivery via JD Logistics to compete with Alibaba Group Holding Ltd (NYSE: BABA).

* JD Logistics reported FY20 revenue growth of 47% year-on-year to $11.4 billion (73.4 billion yuan). The net loss rose 86% Y/Y to 4.1 billion yuan.

* JD Logistics will utilize the offering proceeds to upgrade and expand its logistics networks, develop advanced technologies and expand its customer base.

* Seven cornerstone investors, including SoftBank Group Corp (OTC: SFTBF) (OTC: SFTBY), SoftBank Vision Fund, Temasek Holdings Pte, Blackstone Group Inc (NYSE: BX), Tiger Global, China Chengtong Holdings Group Ltd, Matthews Asia, and Oaktree Capital will subscribe for about $1.53 billion of stock.

* JD.com owns around 79% of JD Logistics.

* JD.com raised around $4.5 billion from a secondary listing in Hong Kong last June and also saw its health arm, JD Health International's Dec. IPO, valued at around $4 billion.

* Price action: JD shares traded higher by 0.15% at $68.25 in the premarket session on the last check Monday.