JD.com

JD.com is one of largest e-commerce companies in China. It is following into the footsteps of Alibaba group by listing their shares in the US marketing. As JD.com files for U.S listing, what does this mean to you as an investor? You will get the opportunity of investing in this company. There was an increase in the number of people who wanted to invest in Chinese companies in 2013. This was after the scandals in US listings back in 2011.

JD filed up to $1.5 billion as a place holder. This company has really grown over time. It is set to increase its sales target to 100 billion which was its 2013 target. As a result of rise in internet, increase in the income of middle class owners, china may increase their sales for up to $180 billion. This has attracted several giants to China such as Walmart and even Amazon. China is expected to take over US as the biggest retail market.

The interest in investing in China’s ecommerce has increased by a very big margin. However, the negative about JD.com is that it is still operating under the shadow of Alibaba. Alibaba has holds about 80 percent of China’s online shopping market. Alibaba is set to release an IPO in 2014 which is set to be the biggest after Facebook Inc. in 2012. The chief operating officer of JD.com, Shen Haoyu, said in an interview that they do not put a consideration on the timing of Alibaba to release an IPO. This means that they will release their company to the public when it seems fit.

This company was previously known as 360buy, it has managed to raise about $2.23 billion in 6 years from its investors Saudi billionaire prince alwaleed bin talal’s kingdom holding co and Ontario teachers’ pension plan. Richard liu, who is the CEO of JD.com, holds 46 percent share in the company. DST global funds and hedge found tiger global management also have shares in this company. You will be able to join in to become a shareholder in this big company.

Founder of IPOX Schuster, Josef Schuster, based in Chicago said that there will be a huge number of investors if the shares of this company will be valued at $10 to $13 billion. In 2011 September, Thomson Reuter’s publication said that JD had plans to rise about $4 to $5 using US IPO. The company was valued at $7.3 billion after receiving a funding of $400 million. Investors are looking forward to the IPO linked to china. The reason behind the growth of JD is that they have their own network of warehouses, couriers and they also provide their services on time. Alibaba on the other hand is still depending on merchants. In 2013 for the first nine months, this company ha s35.8 million active customers’ accounts. In the same year they also processed about 211.7 million orders. This led to an increase in their revenue to about 70 percent which is an equivalent to $8 billion.

Just like other companies in China, JD.com relies on variable interest entity which only allows investors to have economic interest in the company but not ownership. This helps the companies in china to bypass the band that have been set by their government regarding foreign ownership. Chinese companies which list their shares in the US market tend to perform better. One such company is the autohome Inc. which did very well when they listed their company last December.

However, the JD.com intention to list in the US securities exchange commission did not how many depository shares are up for sale and the price in which the shares will be sold for. Currently one dollar is being traded for 6.0553 Chinese Yuan.

According to the way this company has been performing, you can take the chance to invest in these shares. You should not be left behind when this company releases its IPO. There is a likelihood that it will perform better just like the previous Chinese companies listed in the US stock market have been performing. It is worthy investment that will see you increase your earnings. There is no doubt that you will get profit once the share of this company starts h trading in the market. Do not miss this once in a life opportunity to increase your income.