Jingdong Inc. (JD) in which Kingdom Holding Company (KHC) and HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud hold a stake, is planning the largest U.S. initial offering by a Chinese company in more than a decade by the second half of this year. This investment is in line with Kingdom Holding’s diversified and unique investment strategy following Prince Alwaleed and Kingdom Holding’s combined investment in Twitter that has increased from $300 Million to approximately $1.2 Billion since Twitter’s IPO in November 2013 as per market closing on Friday Dec 27th 2013.
JD is the largest online direct sales company with annual sales exceeding $16.7 billion in a market with sales of $213 billion in 2013.
In 2013, Kingdom Holding Company (KHC), chaired by HRH Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, led a consortium of investors advised by QInvest LLC, Qatar’s leading investment bank, for the acquisition of a strategic stake in 360Buy Jingdong Inc. valued at SR1.5 Billion. KHC’s investment in this deal was approximately SR470 Million.
Prince Alwaleed commented saying: “Our deal solidifies the strategic relationship between Saudi Arabia and China. 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. We are also pleased to fortify our investment and business ties with QInvest.”
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 a presence in China via Citibank. Moreover, HRH’s investment in the entertainment sector in China includes Disneyland Hong Kong and in the hotel sector via Four Seasons Hotels and Fairmont Raffles Hotel.
In April 2006, Prince Alwaleed had met with the Chinese President Hu Jintao at the Royal Guest Palace in Riyadh during his official visit to Saudi Arabia.
Founded in 1980, KHC is a publicly traded company which was listed on Tadawul (the Saudi Stock Exchange) in 2007. KHC is one of the world’s most successful and diversified business organizations, highly respected in the field of investments and recognized as an elite player in the Arabian Gulf region, and internationally. The Company is recognized as one of the largest foreign investors in the United States. KHC’s portfolio has its major interests in investment categories ranging from luxury hotels management hotel companies (Four Seasons Hotels and Resorts, Fairmont Raffles Holding Intl and Mövenpick Hotels and Resorts AG) and real estate (Kingdom Tower and project in Jeddah and Kingdom Riyadh project) to hotel real estate investments such as The Plaza, New York, Savoy Hotel, London and Four Seasons, George V Hotel, Paris. KHC also has investments in Media and Publishing (News Corporation, Time Warner, Saudi Research and Marketing Group and Rotana Group), as well as in Entertainment (Euro Disney S.C.A). In addition, Finance and Investment services (Citigroup), Social Media and Technology (Twitter, AOL, Apple and Motorola), as well as Consumer and retail, petrochemicals (Saks Incorporated and Jingdong). Moreover, the Company has investments in Education (Kingdom Schools), Health Care (Medical Services Projects Company), Aviation (NAS Saudi Arabia) and Agriculture (Kingdom Agricultural Development Company – KADCO Egypt).