AiHuiShou earns 23% on Nasdaq debut, enriching JD.com in China

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Shares of “pre-used” consumer electricity platform AiHuiShou climbed 23% on Friday in their Nasdaq debut, the latest in a series of largely successful IPOs backed by the heavyweight of the Chinese e-commerce JD.com.

AiHuiShou, which is 32% owned by JD, closed at $ 17.21, after raising $ 227 million to $ 14 per share this month amid investor optimism over growth prospects and spending consumption in China, the world’s second largest economy. GDP grew 18% year-on-year in the first quarter amid continued recovery from the Covid pandemic.

Investors considering stock returns have ignored the vitriolic political rhetoric between Washington and Beijing amid fighting over geopolitical issues. Shares of major internet companies, including Alibaba, have been weakened, however, by anti-monopoly investigations in China.

JD.com, which went public on the Nasdaq in 2014 and whose shareholders include Tencent (17%) and Walmart (9%), itself raised $ 3.9 billion in a secondary offering in Hong Kong it a year ago. It followed with an IPO in Hong Kong in December by healthcare arm JD Healthcare, which closed at HK $ 107.50 on Friday against an IPO price of HK $ 70.58. . JD Logistics, a logistics arm, listed in Hong Kong last month at HK $ 40.36, raising $ 3.2 billion. It closed at HK $ 40.16 on Friday.

Dada Nexus, a 46% -owned delivery platform by JD.com that went public on the Nasdaq in June of last year and closed at $ 30.16 on Friday from its IPO price. $ 14. Dada, which has a current market capitalization of $ 7 billion, is owned 10% by Walmart and 7% by funds associated with Sequoia Capital China.

AiHuiShou, which is also the latest in a recent string of U.S. listings of losing Chinese companies, had revenue of nearly $ 72 million in 2020, with revenue of $ 741 million. Besides JD.com, its investors include 5Y Capital, based in Shanghai.

JD.com is chaired by Richard Liu, who today has a fortune of $ 18.3 billion on the UKTN Real-Time Billionaire List. He was the 77 of the worlde richest man on UKTN’ 2021 billionaire list released in April. Liu was arrested in Minneapolis in August 2018 for alleged sexual misconduct, but the county attorney did not press charges after an investigation. The share has tripled since that announcement.

China is home to the second highest number of billionaires in the world after the United States.

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@rflannerychina

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