Shares of JD.com surged in their Nasdaq exchange debut after an initial public offering of the Chinese e-commerce platform’s stock raised $1.78 billion.
The stock climbed 10 per cent, or $1.90, to $20.90 from its IPO price while broader indexes rose slightly.
JD.com Inc. had offered about 69 million shares in the IPO, while selling shareholders offered 24.7 million. The company’s stock was priced at $19 per share, or a dollar higher than the range it had forecast.
The company says it plans to use some of the offering’s proceeds to build new warehouses and buy vehicles for shipping and delivery.
JD.com’s larger rival in China, Alibaba, also plans to debut on U.S. stock markets. Its shares have not started trading.