Dallas, Texas 05/30/2014 (FINANCIALSTRENDS) – JD.Com Inc. (ADR) (NASDAQ:JD), a Chinese online retailer which reported $16.7 billion of annual sales in February 2014, raised $1.8 billion through its IPO listing on the U.S. securities exchange. The company offered 93.7 million shares priced at $19 each. The stock debuted on NASDAQ on Thursday, May 22, 2014 and by the end of its first trading session witnessed 130% increase in Kingdom Holding Company (KHC)’s investment value in the company. KHC and its Chairman Prince Alwaleed hold an equally combined stake of approximately 2.5% of its capital. KHC and Prince Alwaleed acquired a combined stake in the company valued at $250 million, back in 2013.
China – Saudi Arabia Relationship
Talking about his investment in JD.Com Inc. (ADR) (NASDAQ:JD), Prince Alwaleed mentioned that the investment solidifies the strategic relationship with Saudi Arabia and the People’s Republic of China. He regarded this deal as an extension of business alliance between the two countries highlighted during then Chinese President Hu Jintao’s visit to Saudi Arabia. Prince Alwaleed personally met Hu Jintao during his official visit to Saudi Arabia back in 2006. Kingdom Holding Company has indirect presence via Citibank in China and Prince Alwaleed’s investment in China includes Disneyland Hong Kong as well as in Fairmont Raffles Hotel and Four Seasons Hotels
Richard Liu, The Founder Chief Executive Officer of JD.Com Inc. (ADR) (NASDAQ:JD), appreciated KHC’s support and expressed for a long lasting and constructive relationship going forward.
Addition to Renaissance IPO ETF
Renaissance IPO ETF (NYSEARCA:IPO) added JD.Com to its ETF lineup after the closing bell on Thursday, May 29, 2014, as announced previously. Renaissance Capital mentioned in a statement that JD.com is the largest online direct sales retailer in China and at the offer price of $19 per share, the company had a market capitalization of $26.4 billion and “qualified for inclusion in IPO.” JD.com is also the second largest B2C e-commerce company in China.
On Thursday, The stock gained 2.50% and closed at $25.40. However, only 8.53 million shares traded during the session as compared to volume of over 16 million shares on Wednesday.
This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.