JD.com Launches Talks for $500 Million IPO of Dada-JD Daojia
The Chinese e-commerce giant is reportedly considering a public offering of an online grocery delivery platform, in which Walmart owns 10 percent.
The stock in JD.com Inc. (Nasdaq: JD) jumped 4 percent, to $31.29 per share Friday, after news surfaced that the e-commerce giant is pursuing a $500 million IPO in New York for its joint venture.
The JV is an online grocery and delivery business called Dada-JD Daojia. The platform formed when JD's supermarket business merged with Dada Nexus's crowdsourcing delivery service. Walmart Inc. (NYSE: WMT) owns 10 percent of the business, as reported by various media.
This week, Walmart China announced it hit record sales growth of 120 percent on Daojia during the 8.8 Shopping Festival in China. The festival was held from July 18 to Aug. 14.
"In 2016, Walmart announced its strategic alliance with JD.com as an important step in advancing its omni-channel retail capabilities in China, while Dada-JD Daojia played a critical role in empowering last-mile service solutions," Walmart China said in the report.
Daojia was launched in 2016 and has more than 100,000 offline retail stores in more than 100 cities in China. The retailer offers "one-hour delivery services for fresh, groceries, flowers, medicine, beauty, household and other products," according to the report.
Walmart said more than 290 of its stores in China sell products on the Daojia platform. Consumers use the Daojia app to place orders, and products are delivered from the nearest Walmart.