After pricing above expectations, JD.com’s IPO has performed well, with its shares currently up more than 8 percent from its $19 per share debut.
JD.com popped higher this morning in its first moments as a public company, but it’s evened out to the $20 to $21 range for now. Is an 8 percent jump modest? Perhaps, but in the current, choppy market, pricing above range and nearly picking up a double-digit gain on your first day is just fine.
Zendesk went public recently, but priced mid range. It is up to $16.90 from a $9 debut. Other companies like Box and Alibaba are in the process of prepping for public runs.
JD.com, known as the Chinese Amazon, is a large business, as TechCrunch reported yesterday following its formal price of its shares:
In 2013, JD.com had revenue of $11.45 billion, a net loss of $8 million, and a net loss attributable to its shareholders due to preferred stock costs of $410 million. That was its smallest net loss on a per-share basis in several years.
On a non-GAAP basis, JD.com had adjusted income of $36 million in calendar 2013, and free cash flow — again, non-GAAP — of $376 million.
For now, investors are willing to accept non-GAAP profits in lieu of normally measured profitability. Likely valued on its revenue growth, JD.com has work ahead of it to maintain its valuation. For today, however, it’s sitting pretty.
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