JD Logistics shined bright at 14% on its debut. This provided the Chinese delivery and warehousing firm a stock market value of $36 billion. It gave a strong start to Hong Kong as it is only the third mega listing in the city so far in 2021.

The company’s shares, which originated from Chinese e-commerce firm JD.com, opened at HK$46.05 in comparison to HK$40.36 price in its initial public offering (IPO). This witnessed a growth in the city’s benchmark Hang Seng Index by 0.36%.

JD Logistics had priced its $3.2 billion IPO closer to the lower end of an indicated range, after which the company witnessed its stock gains.

As per sources, the company plans to use the funds raised from the IPO to further strengthen its networks. It will focus on the lower-tier and suburban areas in China and the infrastructure of the overseas markets.

Sources add that individual investors who were competing for only 3% of the stock on offer oversubscribed the retail portion of the IPO 715 times. The filings states that the stock on offer rose from 3% to 9%, owing to which there was a high level of demand among retail investors.

As per the filings, investors oversubscribed the deal 10.18 times and the company gave the stocks back to 580 investors.

The year 2021 saw JD Logistics’ IPO as the second largest in Hong Kong. And it is only the third to raise $1 billion in the city this year.

The other two companies to make it big on their debut are Kuaishou Technology, which made it to 161% on its debut in January, and Linklogis Inc., which made it to 9.9% on its opening day in April.