Chinese e-commerce company JD files for U.S. IPO
JD.com is the second largest e-commerce company in China after Alibaba. JD has filed for a U.S. listing of its shares. JD filed a placeholder of up to $1.5 billion today and has grown quickly in the last few years. JD.com said in December that they would hit their 100 billion yuan ($16.5 billion) in annual sales target in 2013.
Alibaba is a giant in the Chinese e-commerce market. Alibaba controls around 80% of China’s e-commerce market. Alibaba is expected to go public this year, which is expected to be the largest Internet company IPO since Facebook in May 2012. JD.com used to be known as 360Buy. The company has raised $2.23 billion in the last 6 years from the Ontario Teachers’ Pension Plan and Kingdom Holding Co.
Richard Liu, the founder and CEO of JD.com, has a 46% stake in JD.com. Other investors in JD.com include Tiger Global Management and DST Global.
JD.com distinguishes themselves by working with their own network of couriers and warehouses for efficient delivery. Alibaba still relies on merchants and external couriers. JD.com has 35.8 million active customer accounts and processed 211.7 million orders for the first 9 months of 2013. Their total net revenue jumped 70% to $8 billion for the period.
JD.com is working with BofA Merrill Lynch and UBS Securities LLC as their underwriters for the offering. The company posted a profit for the first 9 months of 2013 after several quarters of losses.
Alibaba’s IPO is expected to raise around $15 billion with a valuation of over $100 billion. The JD.com filing with the SEC did not reveal how many American Depositary Shares the company was planning on selling or the expected price.