JD unit to raise over $3b from HK float

JD Logistics, the logistics arm of Chinese mainland e-commerce giant JD, is likely to raise HK$24.1 billion ($3.1 billion) from its initial public offering in Hong Kong after pricing its shares at the lower half of an indicative range.

The company said on Thursday that it had set its IPO price at HK$40.36 and was looking to capitalize on the country's booming online shopping for rapid growth. It is planning to offer 609.16 million new shares and had earlier said the shares would be offered in an indicative price range of HK$39.36 to HK$43.36 each.

The Beijing-based warehousing and shipping company said the public offering size could increase by up to 15 percent if a "green-shoe" option is exercised, or in case of an overallotment. The option allows companies to issue more shares when there is strong demand from the market.