Friday 25 May 2018

Former Chinese president Hu Jintao with Prince Alwaleed.

KHC-backed firm plans big IPO in US

Riyadh, February 24, 2014

Jingdong, in which Kingdom Holding Company (KHC), the investment firm chaired by Saudi Prince Alwaleed, has a key stake, is planning the largest US initial offering by a Chinese company in more than a decade.

JD is the largest online direct sales company with annual sales exceeding $16.7 billion in a market with sales of $213 billion in 2013, said a statement from KHC. Jingdong plans to launch the IPO by the second half of this year, it added.

This investment is in line with Kingdom Holding’s diversified and unique investment strategy following Prince Alwaleed and KHC’s combined investment in Twitter that has increased from $300 million to approximately $1.2 billion since Twitter’s IPO in November 2013 as per market closing on Friday Dec 27th 2013.

In 2013, KHC led a consortium of investors advised by QInvest, Qatar’s leading investment bank, for the acquisition of a strategic stake in 360Buy Jingdong valued at SR1.5 billion. KHC’s investment in this deal was approximately SR470 million ($125.2 million).

Prince Alwaleed commented saying: “Our deal solidifies the strategic relationship between Saudi Arabia and China. The acquisition is also an extension of the initiative of the Custodian of the Two Holy Mosques to support the business alliance between the two countries.”

"This was highlighted during the visit of the then Chinese President Hu Jintao to Saudi Arabia. We are also pleased to fortify our investment and business ties with QInvest," he stated.

Jingdong founder and CEO Richard Liu said, "We appreciate Kingdom's support and we look forward to a long lasting and constructive relationship."

KHC has a presence in China via Citibank. Moreover, Alwaleed’s investment in the entertainment sector in China includes Disneyland Hong Kong and in the hotel sector via Four Seasons Hotels and Fairmont Raffles Hotel.-TradeArabia News Service

Tags: IPO | US | Kingdom Holding | Alwaleed |

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