Bulletin: JD.com's Listing Of Subsidiary Will Fuel Growth

HONG KONG (S&P Global Ratings) Nov. 26, 2020--S&P Global Ratings today said that JD.com Inc.'s proposal to list its subsidiary JD Health will support its growing spending plans. We expect JD.com (BBB/Positive/--) to largely deploy the US$3 billion-US$4 billion raised from the IPO for organic business expansion, research and development, investments, mergers and acquisitions, and strategic alliances. The IPO and the use of proceeds are in line with our expectation for the China-based online retailer. We believe the listing will improve transparency within JD.com's multiple business segments, although cash leakage could make it harder to upstream dividend when necessary. We forecast JD.com will continue to have healthy revenue growth of more than 18% and its EBITDA will increase by over

...November 26, 2020 HONG KONG (S&P Global Ratings) Nov. 26, 2020--S&P Global Ratings today said that JD.com Inc.'s proposal to list its subsidiary JD Health will support its growing spending plans. We expect JD.com (###/Positive/--) to largely deploy the US$3 billion-US$4 billion raised from the IPO for organic business expansion, research and development, investments, mergers and acquisitions, and strategic alliances. The IPO and the use of proceeds are in line with our expectation for the China-based online retailer. We believe the listing will improve transparency within JD.com's multiple business segments, although cash leakage could make it harder to upstream dividend when necessary. We forecast JD.com will continue to have healthy revenue growth of more than 18% and its EBITDA will increase by over 22% in the next 12-24 months. Continuing robust growth, such that the debt-to-EBITDA stays below 1.5x, could strengthen JD.com's credit profile. This would happen if the company continues...

Bulletin