JD.com’s Fintech Affiliate Seeks 20 Billion Yuan in STAR Market Listing

What’s new: E-commerce giant JD.com Inc.’s fintech affiliate Jingdong Digits Technology Holding Co. Ltd. has filed an application to list on Shanghai’s Nasdaq-style STAR Market.

It hopes to raise about 20.4 billion yuan ($3 billion), said a prospectus lodged Friday.

Guotai Junan Securities Co. Ltd. and Minmetals Securities Co. Ltd. are joint underwriters on the IPO.

What’s the background: Formerly known as JD Finance, JD’s fintech unit was established in 2012. It spun off from Nasdaq-listed JD.com in June 2017 and rebranded as JD Digits in late 2018 as the company expanded into digital technology.

According to the prospectus, the unit operates independently of JD.com, with the biggest shareholder and actual controller being JD.com’s founder Richard Liu.

In the first half of 2020, JD Digits’ revenue reached 10.3 billion yuan with a net loss of 670 million yuan. The company’s revenue and net profit fluctuated widely over the past three years, the prospectus said.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Related: JD.com to File for $2 Billion Second Listing in Hong Kong, Sources Say

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Flynn Murphy (flynnmurphy@caixin.com)

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