Chinese delivery and warehousing firm JD Logistics surged during its debut on the Hong Kong Stock Exchange, amassing a stock market value of $34 million to make it the exchange’s second-largest listing this year.
During its debut on Friday, JD Logistics shares rose 18.3% above its initial public offering (IPO) price. By the early afternoon they were up by 9%, vastly exceeding the 0.6% gain made by the market at large.
With its IPO being priced at $3.2 billion, JD Logistics stocks immediately attracted the attention of market analysts, with its IPO being referred to as a benchmark for demand when it comes to big IPOs in Hong Kong at large as well as the Chinese internet economy, which has been under heavy scrutiny since the start of its ongoing antitrust issues.
During a briefing to mark his company’s listing on Friday, JD Logistics CEO Yu Rui expressed absolute confidence in his organization’s ability to thrive despite the scrutiny being faced by the industry. The key to the company’s success, according to Rui, is the way that it spends on technology in order to differentiate itself.
The JD Logistics IPO is only the third that has been able to raise more than $1 billion in Hong Kong since the start of this year.
