China’s JD.com to spin off industrial, property units in Hong Kong float
Reuters
E-commerce firm JD
JD.com said it would continue to hold a stake of more than 50% in the units, JD Industrials and JD Property, upon completion of the proposed spin-off.
U.S.-listed shares of JD.com rose 6% on the news. They lost more than a third of their value over the past two years, caught in Beijing’s clampdown on the tech sector.
Rival Alibaba
JD.com said the size and structure of its units’ initial public offerings had not yet been finalised.
In their listing prospectuses filed later on Thursday, JD Industrials and JD Property disclosed annual revenues of 14.1 billion yuan ($2.05 billion) and 2.3 billion yuan, respectively.
This is not the first time JD.com has tried to reinvent itself.
The Beijing-based company spun off its logistics unit into a standalone entity in 2017 and then opened up its delivery and warehousing services to third-party companies.
Its business has struggled in the past few quarters due to strict COVID-19 curbs imposed by Beijing, which slammed consumer confidence.
In January, JD.com said it was winding down its e-commerce business in Indonesia and Thailand, where it faced stiff competition from Sea
BofA Securities, Goldman SachsUBS
