JD Digits, the financial technology arm of e-commerce giant JD.com, is preparing for its initial public offering (IPO) in Shanghai’s Star Market, joining waves of Chinese firms pursuing fundraising on the Nasdaq-style tech board.
Four Chinese investment banks – Guotai Junan Securities, Citic Securities, Minmetals Securities and Huajing Securities – last week signed pre-listing tutoring agreements with JD Digits to support its IPO on the Shanghai Stock Exchange’s Science and Technology Innovation Board, according to their filing to the China Security Regulatory Commission on June 28.
A spokeswoman for Beijing-based JD.com said on Thursday that it has no comment on the matter.
JD Digits’ push to list on the Star board comes amid escalating tensions between Beijing and Washington, which is weighing tighter scrutiny on Chinese firms’ plans to go public in the US. The
Nasdaq Stock Market already plans new rules that would make it harder for Chinese companies to list in the US.
JD Digits, formerly known as JD Finance, was valued at 133 billion yuan (US$18.8 billion) after completing its Series B round of financing in 2018. While fintech continues to be its core business, JD Digits’ other activities cover the fields of data technology, blockchain, artificial intelligence and Internet of Things.
