Tuesday, November 13, 2018
 
Columnist
Martin Hennecke

JD.com affiliate raises 13b yuan
 
13/07/2018
 
JD.com Inc's finance affiliate said yesterday it has signed binding agreements with investors to raise 13 billion yuan (HK$15.3 billion) in fresh equity at a valuation of nearly US$20 billion (HK$156 billion).

The fund-raising underscores investor enthusiasm for big, privately-held Chinese technology firms even as public valuations falter. This week, smartphone maker Xiaomi (1810) completed the world's largest tech IPO in almost four years, but saw its shares fall on debut in Hong Kong even after pricing its deal at the low end of its offered range.

JD Finance will reach a valuation of 133 billion yuan after the closing of the fund-raising, it said.

The valuation is more than double the roughly 60 billion yuan JD Finance was estimated to be worth after it was split from JD.com, China's second-largest e-commerce firm, in mid-2017.

Investors in this round include CICC Capital, a unit of investment bank China International Capital Corp, brokerage China Securities, private equity firm Citic Capital and BOCGI, Bank of China's investment arm, JD Finance said.

The fund-raising is expected to close in the third quarter, it said.

JD Finance's fund-raising follows that of Ant Financial, the affiliate of its arch rival Alibaba, which last month was valued at US$150 billion when it raised US$14 billion in the world's largest ever single fund-raising by a private company.

The investments suggest investors remain keen to put money into online payments and lending services in China, especially those backed by large companies such as Alibaba and JD.com.

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