Kingdom Holding achieves success in Jingdong investment

19/02/2014 07:01 AST

Jingdong Inc. (JD) in which Kingdom Holding Company (KHC) and Prince Alwaleed bin Talal hold 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.

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 Dec. 27.

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 Prince Alwaleed, 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 Custodian of the Two Holy Mosques King Abdullah to support the business alliance between Saudi Arabia and 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, the prince’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 met with Chinese President Hu Jintao at the Royal Guest Palace in Riyadh during his official visit to Saudi Arabia.

Arab News