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

|By:, SA News Editor

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.

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