JD Logistics to raise $24.1b in global offering

It set its offer price at $40.26 per share.

The JD Logistics, Inc. estimated its net proceed at approximately $24.11b as it set its offer price at $40.36 per share for its global offering.

The biggest share of the net proceeds will be earmarked for the company’s upgrade and expansion; whilst the remaining will be used for technological development and attracting new customers amongst others.

About 55%, or approximately $13.26b of the proceeds will fund the upgrade and expansion of its logistics network in the next 12 to 36 months.

Some $4.82b will be for the development of advanced technologies for its supply chain solutions and logistics services.

A total of $3.61b will be used for the breadth and depth of their solutions and in attracting potential customers in the next 12 to 36 months. The other $2.4b will be for general corporate purposes and working capital needs.

The global offering comprised of 609.1 million shares; of which 54.82 million shares are for Hong Kong and 554.33 million are under international offering.

“If the Over-allotment Option is exercised in full, we will receive additional net proceeds of approximately $3,632m for 91,374,100 Offer Shares to be issued,” JD Logistics noted in its disclosure.

JD logistics added the Hong Kong offering have been “very significantly” over-subscribed with a total of 1.36 million valid applications received.

Its international offering was likewise over-subscribed by 10.8 times of the total number of offer shares initially available.