JD.com To List Property, Industrial Units In HK

Mainland internet giant JD.com said on Thursday that it had submitted applications to list its industrial and property units as separate entities on the Hong Kong Stock Exchange, days after rival Alibaba announced its own corporate shake-up.

The company's US-listed shares rose 6 percent in overnight trading on news of the spin-offs.

In filings to the Hong Kong Stock Exchange, JD.com said it had yet to finalise the size and structure of the two offerings, but it would indirectly maintain more than 50 percent of the shares in each unit.

Two sources with knowledge of the floats told the Reuters news agency that the two JD units are seeking to raise US$1 billion each in the IPO. They declined to be identified as the information is confidential.

In their listing prospectuses filed later on Thursday, JD Industrials and JD Property disclosed annual revenues of 14.1 billion yuan (US$2.05 billion) and 2.3 billion yuan, respectively.

BofA Securities, Goldman Sachs and Haitong are the sponsors of the units' IPOs. UBS and Citic Securities are the financial advisers for JD Industrials, while UBS is the financial adviser for JD Property.

Earlier this week, Alibaba announced it would re-organise into a holding company, with six sub-divisions each with their own CEOs and boards.

Alibaba's announcement boosted the mainland tech sector, which has been affected by tightening regulations in recent years. (Reuters/RTHK)