The online retail giant, which has been compared to a cross between eBay and Amazon, made 133 million shares available to institutional investors on Friday (June 5). It would raise $3.8 billion based on the last closing price of JD.com’s U.S.-listed shares, according to documents seen by the Times. That number could rise to $4.3 billion if bankers execute an option to increase the allotment to meet demand.
JD.com is expected to be listed in Hong Kong on June 18. That’s the same day that the company, Apple’s official Chinese re-seller, will hold its major online shopping festival, called 6.18, by cutting the prices of its phones, PYMNTS reported.
JD.com’s shares are traded on the Nasdaq in New York. It is among several Chinese companies planning to return to markets closer to home amid fears of growing U.S.-China hostilities.
The stock sale comes at a time of growing pressure from U.S. lawmakers for greater financial scrutiny of Chinese companies. JD.com’s prospectus said a bill is being considered on Capitol Hill that would delist Chinese companies.
Charlie Li, the outgoing head of the Hong Kong exchange, told the newspaper that a large number of Chinese companies listed in the U.S. would seek to raise money in Hong Kong because of the less friendly atmosphere in the States.
Still, JD.com faces competition from Alibaba Group Holding Ltd., which raised roughly $13 billion through a stock sale in the city last November.
In addition, PYMNTS reported that Pinduoduo, the Chinese eCommerce company, has raised $1.1 billion to finance growth, offer more products and upgrade its shopping experience.
JD.com has named Bank of America Securities, UBS and CITIC Securities as the joint sponsors for the IPO.