Cathay Capital’s Portfolio Company JD Logistics Goes Public with Hong Kong’s Second Largest IPO in 2021
May 31, 2021
On May 28, JD Logistics was successfully listed on the Hong Kong stock exchange with an issue price of HK$40.36 per share, a 15% increase at the opening, valuing market nearly 290 billion HKD as of release time, which is also the second largest IPO in Hong Kong this year second only to Kuaishou in January. Cathay Capital made a strategic investment in JD Logistics in February 2018.
JD Logistics is the largest integrated supply chain & logistics service provider in China. Empowered by science and technology, it provides a full range of supply chain solutions and quality logistics services covering all business areas including warehousing and distribution, from manufacturing to end customers, covering common and special goods.
Why did Cathay Capital invest in JD Logistics?
As an important component of the economy, logistics is not just a channel for the circulation of goods and materials, but a supply chain infrastructure, which has become an indispensable foundation for economic flows, social mobility and daily life needs. The rapid development of the world’s largest e-commerce market in China has greatly promoted the development of the logistics industry. In addition, the impact of Covid-19 has further accelerated the growth of e-commerce, and the logistics supply chain has become increasingly strategic.
In fact, Cathay Capital is deeply rooted in the supply chain sector and has invested in numerous logistics supply chain companies, including JD Logistics, FuturMaster, Zongteng Network, Yimidida, IntPlog and so on, and has been deeply engaged in the industry for many years.
Cathay Capital’s core value proposition of “Being Useful”
As a professional investment institution with profound global industrial resources, Cathay Capital’s unique global ecosystem can help JD Logistics expand the international market and achieve a global presence. In the pasts years, we have not only helped JD Logistics to get acquainted with the European market, but also connected it with industry resources including Geopost through in-depth projects. We will also continue to leverage our global industrial resources to continuously facilitate global expansion of JD Logistics and provide it with more extensive and deeper cross-border support.
Cathay Capital’s expectations for JD Logistics after its IPO
The logistics industry is a huge industry that still has a lot of room for improvement in efficiency, and Cathay Capital believes that this industry will continue to evolve. JD Logistics is very impressive in performance, efficiency, customer experience, as well as organization and management ability. We believe that JD Logistics has the potential to become the most trusted supply chain infrastructure provider in the world, and Cathay Capital will fully support JD Logistics to achieve this vision through our global ecosystem spanning four major continents.