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JD.com sets IPO price range, aims for ~$23B valuation

  • JD.com, China's second-biggest e-commerce firm behind Alibaba, is looking to sell 93.7M shares (69M from the company, 24.7M from existing holders) in a range of $16-$18. At the midpoint of its range, JD would be raising $1.17B, and have a valuation of $23.2B (2x trailing sales). (prospectus)
  • The company will trade under the symbol JD. IPO underwriters include BofA/Merrill, UBS, Barclays, Jefferies, Oppenheimer, Piper, SunTrust, and Cowen.
  • JD.com had 2013 revenue of $11.45B (+68% Y/Y), and a net loss of $8M. Gross margin was 9.9%, and fulfillment spend accounted for 6% of revenue.
  • A Tencent (TCEHY) affiliate owns a 14.3% stake going into the IPO. The company recently invested $214.7M in JD, while also agreeing to transfer multiple e-commerce properties and forming an alliance that covers payments integration for its WeChat mobile messaging platform.
  • Founder Richard Liu remains JD's largest shareholder, and will have 83.7% voting power post-IPO. Hedge fund Tiger Global also has a big stake.
  • JD kicked off its IPO roadshow today, six days after Alibaba filed for an IPO. The FT reports JD has already received enough orders to cover its books.
  • Previous: JD.com files for $1.5B IPO
Comments (2)
  • James Sands
    , contributor
    Comments (2431) | Send Message
     
    While Alibaba has much more total web traffic than JD, web traffic metrics are surging for JD. The average JD.com visitor has almost 3 times as many pageviews and spends on average over 2.5 times longer on the sight than Taobao.com. These numbers are much more striking when compared to Tmall.com.

     

    JD.com may have a better shot at growing faster towards Amazon's level, while it surpasses eBay's revenue in the next 1.5 to 2.5 years. The company is also continuing to build out its delivery fleet, potentially as a major competitor to FedEx and UPS who have been delayed by permitting issues.

     

    The margins of the company are pretty uninspiring, so this is where Alibaba is much more lucrative. It will be interesting watching these two companies develop.
    12 May 2014, 02:32 PM Reply Like
  • Econ Student
    , contributor
    Comments (237) | Send Message
     
    This is definitely exciting. These big IPOs bring excitement and new investors into the stock market. It also helps people make money which in turn creates jobs. As long as they don't crash like the Facebook IPO this will be good for everybody.
    12 May 2014, 04:43 PM Reply Like
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