CMBI acted as Joint Bookrunner for the Hong Kong IPO of JD Logistics, Inc. (2618.HK)

Transaction Overview

JD Logistics, Inc. ("JD Logistics", Stock code: 2618.HK) is successfully listed on the Hong Kong Stock Exchange on May 28, 2021. CMBI acted as Joint Bookrunner and Joint Lead Manager for this IPO.

JD Logistics is the leading technology-driven supply chain solutions and logistics services provider in China. JD Logistics offers a full spectrum of supply chain solutions and high-quality logistics services enabled by technology, ranging from warehousing to distribution, spanning across manufacturing to end-customers, covering regular and specialized items. According to the CIC Report, JD Logistics is the largest player, in terms of total revenue, in China’s integrated supply chain logistics services industry in 2020.

JD Logistics issued 609,160,800 shares (assuming the Over-allotment Option is not exercised), and the offering price was set at HK$40.36, and the offering amount was approximately HK$24.6 billion or US$3.16 billion (assuming the Over-allotment Option is not exercised). The offering has been widely recognized by international and domestic investors. International Offering has been 10.80 times oversubscribed, and Hong Kong Public Offering has been 715.61 times oversubscribed.

Acting as the Joint Bookrunner and Joint Lead Manager, CMBI has assisted the company to attract a number of International long-only funds, top Chinese long-only funds and insurance funds, hedge funds, and high quality orders from CMBI Wealth Management, perfectly demonstrating CMBI's broad investor coverage and strong underwriting capability. The Company thought highly of the contribution of CMBI in underwriting process, especially contribution to the high-quality book.

The listing of JD Logistics in Hong Kong Stock Exchange Main Board is a significant supply chain solutions and logistics services sector equity transaction completed by CMBI from 2021. This deal has consolidated the CMBI’s leading position in the supply chain solutions and logistics services sector. The successful completion of the global offering is another classic showcase of CMBI in serving China New Economy clients.

Source: Company Announcement

About JD Logistics

JD Logistics is the leading technology-driven supply chain solutions and logistics services provider in China. JD Logistics offers a full spectrum of supply chain solutions and high-quality logistics services enabled by technology, ranging from warehousing to distribution, spanning across manufacturing to end-customers, covering regular and specialized items. According to the CIC Report, JD Logistics is the largest player, in terms of total revenue, in China’s integrated supply chain logistics services industry.

JD Logistics’ journey began with the establishment of JD Group’s in-house logistics department in 2007, and JD Logistics has been continually building its logistics infrastructure, technologies, as well as operational and industry know-hows for over a decade. Starting from 2012, JD Logistics helped JD Group maintain its inventory turnover days consistently below 40 days despite the significant increase in the number of SKUs. In 2020, approximately 90% of the total online retail orders processed for JD Group through JD Logistics’ networks were delivered on the same day or the day after the order was placed. JD Logistics has then opened up its solutions and services to external customers since 2017 with the goal of empowering their supply chains.

Supply chain technology is the bedrock of JD Logistics’ operations and differentiates it from competitors. JD Logistics leverages fundamental technologies such as 5G, AI, big data, cloud computing and IoT to continuously improve capabilities in automation, digitalization, and intelligentization. JD Logistics uses advanced unmanned technologies and robotics, such as automated guided vehicles (AGVs), autonomous mobile robots (AMRs) and sorting robots, self-driving vehicles, among others, to deliver critical improvements in speed, accuracy and productivity in all key logistical operations including warehousing, transportation, sorting and delivery. As of December 31, 2020, JD Logistics operated 32 Asia No. 1 smart mega warehouses covering 22 cities in China, including a fully unmanned warehouse located in Shanghai, which can process more than 1.3 million orders per day during peak seasons. JD Logistics’ proprietary warehouse management system (WMS), transportation management system (TMS) and order management system (OMS) support the digitalization of its customers’ supply chains, and are coordinated and synchronized by intelligent algorithms to enable centralized decision making in areas such as sales forecasting, merchandise distribution planning and supply chain network optimization. As of December 31, 2020, JD Logistics were entitled to over 4,400 patents and computer software copyrights (including applications thereof), of which over 2,500 relate to automation and unmanned technologies.

Source: Prospectus

Disclaimer

This material is for reference only. Investor should rely only on the information contained in the Prospectus of this Global Offering to make investment decision.

Publish Date:2021-05-27
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