LYNXMPEABE0EM L – China’s logistics firm JD (NASDAQ:JD) Logistics Inc.’s shares soared on its debut on the Hong Kong Stock Exchange, which raised $3.2 billion in the bourse’s second-largest listing in 2021 to date.

JD Logistics shares jumped 10.75% to HKD44.7 ($5.76) by 12:42 AM ET (4:42 AM GMT), after surging up to 18% earlier in the session. Parent company JD. Com Inc.’s (HK:9618) Hong Kong shares were down 0.21%.

The company raised $3.2 billion in its initial public offering. The stocks had been priced at HK$40.36, the lower end of its offered range, leading to concerns about demand for new listings in the city.

The retail portion of the IPO was oversubscribed 715 times by individual investors, who were competing for just 3% of the stock on offer, according to a company filing.

The institutional investor part was 10.18 times oversubscribed by 580 investors. Softbank (OTC:SFTBY) Group Corp.’s (T:9984) Vision Fund, Temasek Holdings and BlackRock Inc. (NYSE:BLK) were among the cornerstone investors who took 48.3% of the shares.

JD Logistics, the delivery arm of, was founded in 2007 and spun off a decade later. With a network of over 900 warehouses, JD Logistics will expand into less-developed regions in China and new markets globally following the listing.

“Frankly speaking, the focus for next few years will still be growth… we will focus on business expansion and revenue growth for the next several years. Our net margin will keep improving in the long-term,” JD Logistics Chief Executive Officer Yu Rui told Bloomberg.

JD Logistics takes up just a 2.7% share of the logistics industry in China and is planning to expand overseas, including Europe. It will likely set up logistics centers on the continent within a year, Yu added.

The company is still loss-making, reporting CNY4.1 billion ($642.21 million) in a net loss in 2020, according to its prospectus.

The listing comes as China is tightening scrutiny on internet platforms, such as Alibaba (NYSE:BABA) Group Holding Ltd. to Tencent Holdings (OTC:TCEHY) Ltd. and Meituan.

“JD Logistics is doing better than any other companies in B2B sector in terms of ensuring the benefits of our front-line workers and regulatory compliance…From our point of view, we don’t see much potential risks in regulation,” said Yu.

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