Saudi billionaire businessman Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud and his company Kingdom Holding Company have seen the value of their shares in Chinese online retailer Jingdong surge by 130 percent after the first day of trade on NASDAQ, it was reported.
The company has raised $1.8bn in its US share sale at the price of $19 per share, the Wall Street Journal said.
Prince Alwaleed, who has topped the Arabian Business Rich List for 10 years running, and KHC, of which he is chairman, hold an equally combined stake of 2.5 percent of JD’s capital after acquiring a $250m stake in 2013.
In February 2014, JD.com exceeded annual sales of $16.7billion, WSJ reported.
The Saudi investment is in line with KHC's diversified and unique investment strategy following Kingdom Holding and Prince Alwaleed's combined investment in US social media giant Twitter in 2011.
“Our deal solidifies the strategic relationship between Saudi Arabia and China,” Prince Alwaleed was quoted by the WSJ as saying. “The acquisition is also an extension of the initiative of the Custodian of the Two Holy Mosques to support the business alliance between Saudi Arabia and The People’s Republic of China. This was highlighted during the visit of the then Chinese President Hu Jintao to Saudi Arabia.”
The Founder and CEO of Jingdong Inc, Richard Liu said: “We appreciate Kingdom's support and we look forward to a long lasting and constructive relationship.”
KHC has indirect presence in China via Citibank. As well as investments in the entertainment sector with Disneyland Hong Kong and in the hotel sector via Four Seasons Hotels and Fairmont Raffles Hotel.For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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