Shanghai, China (4E) – Chinese retailing website JD.com Inc. is expecting to raise around $1.7bn in its initial public offering (IPO) in the U.S., according to a regulatory filing Friday by the company that is backed by Asia’s largest Internet firm Tencent Holdings Ltd.
The company said it plans to sell 93.7 million American depositary shares (ADS) priced at a range of $16 to $18 per share. About 69 million of those ADS are from JD.com, while some selling shareholders are selling an extra 24.7 million ADS, but the company will not get any proceeds from those sales.
JD.com’s stock offering would mark the largest for a Chinese Internet firm in the U.S., according to data by Bloomberg News.
While Chinese e-commerce giant Alibaba operates an online marketplaces that connects merchants with consumers or business customers, JD’s business model can be compared with Amazon.com Inc. as it is a direct seller of goods through its websites.
Tencent acquired a 15 percent stake in JD.com and will transfer its e-commerce operations to that site, according to a March 9 statement by the Internet giant.
In 2013, JD.com registered a revenue of $11.5bn and a total of 47.4 million active customer accounts, according to the company’s filing.