Kingdom sees Jingdong stake value up 130pc
Riyadh, May 24, 2014
Kingdom Holding Company, the investment firm chaired by Saudi Prince Alwaleed, said the value of its investment in Chinese online retailer Jingdong increased by 130 per cent on the first day of trading on Nasdaq.
Shares of Jingdong (JD.com) began trading on the Nasdaq on May 22 under the symbol 'JD' in which KHC and its chairman Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud hold an equally combined stake of 2.5 per cent of its capital.
JD.com has raised $1.8 billion in its US share sale at the price of $19 per share. With this, both KHC and Alwaleed's combined investment value went up by 130 per cent at closing on the first day of trading.
KHC said it has indirect 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, said the company in a statement.
In 2013, KHC and Alwaleed had acquired an equal strategic stake in JD.com with its combined value at $250 million. This investment was in line with KHC’s diversified and unique investment strategy following Kingdom Holding and Prince Alwaleed’s combined investment in Twitter.
On the stake value boost, Alwaleed said: “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 Saudi Arabia and The People’s Republic of China."
"This was highlighted during the visit of the then Chinese President Hu Jintao to Saudi Arabia," he added.
JD.com founder and CEO Richard Liu said, "We appreciate Kingdom's support and we look forward to a long lasting and constructive relationship."
In February, JD.com had exceeded annual sales of $16.7 billion.-TradeArabia News Service