JD Logistics is reported to have held preliminary discussions with banks on the IPO.

　　People familiar with the matter revealed that the company preferred to choose Hong Kong as the listing location.

　　A person familiar with the matter revealed that JD's logistics subsidiary is considering going public and may use this to raise at least 5 billion US dollars.

　　The person familiar with the matter revealed that the valuation target of JD Logistics is about 40 billion US dollars. Since the information was not disclosed, people familiar with the matter requested anonymity. The company is reported to prefer Hong Kong as the listing location, and has already made preliminary contacts with banks.

　　People familiar with the matter said that the IPO plan is still in the initial stage, and the company may decide not to proceed further. Details, including the size and listing location, may still change. This news was first reported by IFR.

　　A representative from JD did not immediately respond to requests for an interview.

　　In 2017, China's second-largest e-commerce giant, JD divested its logistics business as an independent entity. According to JD's latest financial report, as of September 30, JD Logistics operated more than 800 warehouses in China. The net profit of the new business in the third quarter, including the logistics business, was approximately RMB 11 billion (US$1.7 billion).

　　According to Bloomberg, JD is seeking to list its healthcare business in Hong Kong and raise about 3 billion US dollars. Its fintech subsidiary JD Digital Technology submitted a listing application on the Shanghai Science and Technology Innovation Board in September, but it is unclear how the changes in microfinance regulations will affect its listing plans.

　　Earlier this year, JD went public in Hong Kong for the second time, raising US$4.46 billion.