The WSJ reports,"at a time when investors are still nursing wounds from the massive sell-off in young technology stocks, Chinese online retailer JD.com Inc. is readying a big initial public offering.
The IPO marks a test for the lead investment bankers on the deal, Bank of America Merrill Lynch and UBS AG: in the current adverse environment, can they attract investors to a fast-growing but unprofitable online retailer?
The Beijing-based company and existing shareholders plan to sell 98.7 million American depositary shares for $16 to $18 apiece in the IPO, raising up to $1.69 billion before the potential sale of additional shares to underwriters.
JD.com starts off life as U.S. stock amid strong investor skepticism when it comes to shares of fast-growing technology companies. The Nasdaq Internet Index tumbled 9.6% this year through Tuesday, on the heels of a 65% rally in 2013. Amazon.com Inc., JD.com’s U.S.-based peer, has seen shares slide 24% in 2014. The offering will be the largest U.S. tech IPO since the November debut of Twitter Inc.TWTR -0.06%, which has seen its stock drop 50% year-to-date".
