JD Digits, the fintech subsidiary of Chinese online marketplace JD.com, is preparing for an initial public offering at Chinaโs Nasdaq-style STAR Market in Shanghai, according to a filing by several securities firms.
Why it matters:ย The move is part of JD.comโs broader plan to take its affiliates public over the next two years. TechNodeย reportedย in May that the e-commerce giant will focus on floating shares of JD Digits and JD Logistics, the companyโs courier business, after JD.com’s own secondary listing in Hong Kong in June.
- JD Digitsโ STAR Market listing plan means the new tech board, whichย openedย on the Shanghai Stock Exchange in July 2019, has started to attract internet-based tech companies backed by likes of JD.com and Alibaba. The board has stated a preference for companies from the semiconductor and manufacturing sectors.
Details:ย Four Chinese securities firms have signed โpre-listing tutoring agreementsโ with JD Digits on June 28 to help the company file an IPO on the STAR Market, according to aย filingย to the China Securities Regulatory Commission (CSRC), the countryโs top securities watchdog.ย
- The CSRCย requiresย companies to be tutored by qualified brokers before they go public in Chinaโs stock markets.ย
- A JD.com representative declined to comment.
Context:ย Spun off from JD.com in August 2017, JD Digits is currently valued at RMB 133 billion (around $18.8 billion) afterย raisingย RMB 13 billion in 2018.
- Formerly JD Finance, the affiliate operates a series of loan businesses and provides artificial intelligence and blockchain-based services targeting city governance and agriculture, according to its website.
- Nasdaq-listed JD.comย debutedย on the Hong Kong stock exchange on June 18, becoming the third Chinese tech firm to launch a secondary listing in the city following rivalย Alibabaย in September and gaming giantย Netease earlierย in June.
