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Fri 21 Feb 2014 10:55 AM

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Alwaleed-backed Jingdong plans IPO in US

Online retail firm to hold largest US initial offering by Chinese company in more than a decade in H2

Alwaleed-backed Jingdong plans IPO in US

Jingdong Inc, in which Prince Alwaleed's Kingdom Holding Company holds a stake, is planning the largest US initial offering by a Chinese company in more than a decade by the second half of this year.

Last year, the Saudi billionaire's investment firm led a consortium of investors to buy a SR1.5 billion ($399 million) stake in the Chinese online retail firm, with Kingdom Holding investing SR470 million.

Jingdong, an online direct sales company, posted annual sales exceeding $16.7 billion last year, a statement said.

The proceeds will help Jingdong expand in an e-commerce market that will be worth $395 billion by 2015, according to McKinsey & Co.

Chinese companies raised $907 million from first-time share sales in the US last year, more than five times the amount in 2012, data compiled by Bloomberg show.

Prince Alwaleed said: "Our deal solidifies the strategic relationship between Saudi Arabia and China."

Richard Liu, the founder and CEO of Jingdong Inc, said: "We appreciate Kingdom's support and we look forward to a long lasting and constructive relationship."

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