JD.com Inc.'s logistics arm is in talks with banks for a potential overseas IPO that can raise between $8 billion and $10 billion, Reuters reported Dec. 23, citing people familiar with the matter.
JD Logistics reportedly targets a valuation of at least $30 billion by a listing in Hong Kong or New York. The logistics unit expects to select banks for the IPO in the second quarter of 2020.
Reuters noted that the company will use the funds for warehouse expansion and potential acquisitions.
JD.com did not immediately respond to S&P Global Market Intelligence's request for comment.
The Chinese e-commerce company set up JD Logistics as a separate entity in 2017. In 2018, JD.com raised approximately $2.5 billion for JD Logistics to enhance its smart supply chain network.