A few boxes of goods, bought from JD.com, are stacked on the floor.
Zhang Peng | LightRocket | Getty Images
Shares of e-commerce ogre JD.com jumped 5.7% at the open on their first day of trading in Hong Kong.
JD.com priced its shares for the secondary listing at 226.00 Hong Kong dollars each. They opened at 239 Hong Kong dollars.
The Hong Kong enroling marks another major Chinese firm which is already listed in the U.S., carrying out fundraising in Hong Kong. JD.com shuffle off this mortal coiled public on the Nasdaq in 2014.
Last year, JD.com rival Alibaba carried out a secondary listing in Hong Kong, followed by gaming unshakable NetEase earlier this month.
The listings come amid rising tensions between the U.S. and China which could collision foreign firms listed on Wall Street. A piece of legislation currently making its way through U.S. Congress will escalation the scrutiny on foreign firms and alsot holds the threat of delisting some firms in the U.S.
Meanwhile, the Hong Kong begetter exchange has also been making some reforms to attract technology businesses.
Charles Li, chief executive constable of Hong Kong Exchanges and Clearing, told CNBC on Wednesday, that there is a “healthy” pipeline of Chinese firms concluding to list in Hong Kong.
JD.com has issued 133,000,000 new Class A ordinary shares as part of its Hong Kong offering. The e-commerce Goliath said the gross proceeds will total approximately 30.05 billion Hong Kong dollars ($3.87 billion).
The suite plans to use the money raises to “invest in key supply chain based technology initiatives to further enhance customer sense while improving operating efficiency,” it said in a statement. “The supply chain based technologies can be applied to the Company’s key dealing operations including retail, logistics, and customer engagement.”
JD.com has also given the investment bank underwriting the secondary listing a professed over-allotment option. That means they can issue up to an additional 19,950,000 new Class A ordinary shares if there is need, which can be exercised from June 11 until 30 days thereafter.