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Deloitte assists JD Logistics listing on Hong Kong Main Board

Hong Kong's 2nd largest IPO this year; Deloitte's 3rd Hong Kong IPO engagement for JD.com

Deloitte China helped JD Logistics, Inc. ("JD Logistics", stock code: 02618.HK) list successfully on the Main Board of the Hong Kong Stock Exchange ("the Exchange") on 28 May 2021. This marked the completion of Hong Kong's 2nd largest initial public offering ("IPO") in terms of proceeds so far in 2021.

This was also the 3rd Hong Kong listing engagement Deloitte China has completed for JD.com and its subsidiaries within a year, following our assistance on the listings of JD.com, Inc. ("JD.com", or "JD Group"; stock code: 09619.HK) and JD Health International Inc. ("JD Health"; stock code: 06618.HK) on 18 June 2020 and 8 December 2020 respectively.

  • In this public offering, JD Logistics issued 610 million shares (assuming the over-allotment option is not exercised) at an offer price of HKD40.36 per share. The total proceeds were about HKD24.59 billion, making it the 2nd largest IPO in Hong Kong in 2021 to-date.
  • The market capitalization exceeded HKD250 billion on the day of listing, giving it the highest listed company market cap in Hong Kong's logistics sector.
  • Its Hong Kong offered shares were over-subscribed by more than 700 times with over HKD500.0 billion frozen, marking one of the 10 largest sums frozen in a Hong Kong IPO year-to-date.

In terms of funds raised, JD.com was the biggest IPO in Hong Kong – and 2nd largest globally – in 2020, and JD Health was the 2nd largest HK IPO – and 4th largest globally – that year. JD Logistics was another outstanding IPO. Deloitte China is proud to have been able to support these three global offerings. Our involvement demonstrates Deloitte China's leadership and capabilities in Hong Kong IPO services, which have once again surpassed those of our peers.

About the IPO engagement

The engagement team commenced work on the IPO in December 2020. With the joint efforts of a multi-disciplinary, cross-regional team led by Jeffrey Fu, chief partner of Deloitte Touche Tohmatsu CPA LLP; Ben Yam, Mark Lian and Eleanor Hu, Deloitte China audit & assurance partners, and the collaboration of several intermediaries, we provided professional services to JD Logistics and were able to help it complete its listing on the Hong Kong Main Board in only five months. 

(From left) Eleanor Hu, Ben Yam and Mark Lian, partners of audit & assurance; Patrick Tsang, CEO of Deloitte China; Yui Yu , executive director and CEO of JD Logistics; Wei Zhang, partner of audit & assurance; Jeffrey Fu, chief partner of Deloitte Touche Tohmatsu CPA LLP; Vera Luo and Michael Chen, managers of audit & assurance attended the listing ceremony of JD Logistics.

(From left) Ben Yam, partner of audit & assurance; Vera Luo, manager of audit & assurance; Mark Lian, partner of audit & assurance; Jeffrey Fu, chief partner of Deloitte Touche Tohmatsu CPA LLP; Yue Ma, CFO of JD Logistics; Patrick Tsang, CEO of Deloitte China; Wei Zhang, Eleanor Hu, partners of audit & assurance; Michael Chen, manager of audit & assurance attended the listing ceremony of JD Logistics.

 (From left) Vera Luo, manager of audit & assurance; Eleanor Hu, Mark Lian and Ben Yam, partners of audit & assurance; Michael Chen, manager of audit & assurance from Deloitte China's IPO engagement team attended the listing ceremony of JD Logistics.

About the client

JD Logistics is China's leading technology-driven supply chain solutions and logistics services provider. Through its tech-enabled logistics network across the country, which reaches all parts of the world, and its rich industry insights, it provides an integrated supply chain logistics solution that covers every business segment and quality logistics services for clients and consumers.

  • China's largest integrated supply chain and logistics service provider, with the most comprehensive, multi-layered warehousing network. It has one of the largest warehousing networks in China, and about 250,000 front-line employees serving nearly all districts and provinces in China;
  • JD Logistics' revenue reached RMB49.8 billion in 2019 and hit RMB73.4 billion in 2020, with growth of 47.2%. As at end of 2020, it has provided more than 190,000 corporate clients with delivery logistics services. Through the JD Logistics network, about 90% of online retail orders from JD Group can be delivered on the same day or next day after they are placed;
  • Driven by technology, leading to high mobility and sustainable development worldwide, JD Logistics has become the world's trusted supply chain infrastructure service provider.
     

Sources: Global Offering Prospectus of JD Logistics published on 17 May 2021

Year

Event

2007

JD Logistics was established as an internal logistics department under JD Group

2010

Launched "211" program providing same-day and next-day service

2014

Launched first Asia No.1 smart mega warehouse in Shanghai

2017

JD Logistics started to serve external customers with its supply chain solutions and logistics services

2020

Formed a task force dedicated to pandemic relief and leveraged its advanced technologies during the COVID-19 outbreak in China

Deloitte China congratulates JD Logistics on its successful listing on the Hong Kong Stock Exchange. Deloitte China is dedicated to providing clients with professional, high-quality audit services, helping them continue to forge ahead in a challenging macro-economic and capital market environment. We also look forward to leveraging our experience and perspective in China and international markets to help more companies diversify their strategic layouts, expand their capital scale, and accumulate advantageous resources.

Stay tuned for more exciting listing news from our clients soon! 

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