JD.Com Inc (ADR) (NASDAQ:JD) Prices U.S IPO


Dallas, Texas 05/28/2014 (FINANCIALSTRENDS) – JD.Com Inc (ADR) (NASDAQ:JD), the Chinese Ecommerce company has now priced its United States Initial Public offering above the marketing-range to raise $US1.78B, pointing to very strong demand for its bigger competitor – Alibaba Group Holding Inc’s upcoming mega-float.JD.com, is a loss making company and has the backing of Kingdom Holding Co that is owned by Alwaleed bin Talal, the Saudi billionaire Prince. The former is all set to set to now debut on the NASDAQ in what is slated to be the biggest-listing of a Chinese company in the U.S.

The largest IPO

China’s number 2 Ecommerce company had priced its ADS at $US19.00 each, which was above the $US16-$US18 per ADS and indicated range, valuing it at over $US25M, as per its underwriters. Investors are now watching JD.Com Inc(ADR) (NASDAQ:JD) and hoping for some clues as to exactly how Wall Street will now receive the company’s much larger peer. The company, Alibaba has filed what could easily be the largest initial public offering by any tech company to date.

Close ties

JD has forged a very close partnership with Tencent Holdings Ltd, which is Alibaba’s arch-rival and will rise $US.31B from sale of 69M ADS. It would also raise an additional $US1.31B by issuing the shares to Tencent, said JD.com in a statement. The latter & Tencent had agreed to merge their respective Ecommerce operations in 2014 March & as part of the deal, Tencent had agreed to subscribe to the JD.com shares. This 10-year-old company is the biggest direct-seller of various online goods in China. It will continue to be very tightly-controlled by Richard Liu, its founder and CEO post the IPO, through some special shares that grant him certain extra voting rights. The company had awarded Liu the one-off bonus as it prepared for its IPO.

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