What Does JD.com’s Upcoming Hong Kong IPO Means for U.S. Investors?

JD.com (NASDAQ: JD), the largest direct retailer in China, plans to follow Alibaba's (NYSE: BABA) lead with a secondary stock listing in Hong Kong, according to Reuters. JD could list its shares as early as June and raise up to $3 billion, making it Hong Kong's biggest IPO of the year.

JD has appointed Bank of America, UBS, and Hong Kong-based CLSA to oversee the deal. Bank of America and UBS also led JD's IPO on the NASDAQ in 2014. Let's examine the proposed offering, what it reveals about JD's ownership structure, and whether or not investors should be concerned.

Image source: Getty Images.

Continue reading

Source Fool.com