JD Technology, the fintech arm of Chinese e-commerce company JD.Com, has been forced to delay an up to $2 billion Hong Kong IPO because domestic regulatory approval for the listing has not been forthcoming, said four people with knowledge of the matter, reports Reuters. The financial technology, cloud and artificial intelligence arm of JD.Com applied to the China Securities Regulatory Commission (CSRC) in late January seeking an offshore listing, according to the regulator’s website.
The company was hoping to lodge its first filings with the Hong Kong Stock Exchange by the end of March, followed by the launch of the initial public offering (IPO) later this year, said three of the sources. It appointed banks for the listing, according to sources.
However, it has not yet managed to secure approval from the CSRC which is needed for the domestically incorporated company to list offshore, including in the Chinese-controlled territory of Hong Kong, they added.