JD.com (NasdaqGS: JD), the Chinese online retailer whose shares surged following an initial public offering on Thursday, will soon have at least one home in an exchange traded fund.
The Renaissance IPO ETF (NYSEArca: IPO) will add JD.com to its lineup on after the close of U.S. markets on May 29.
JD.com, “China’s largest online direct sales retailer and second largest B2C e-commerce company, raised $1.8 billion in its IPO by pricing 93.7 million shares at $19. At the offer price, the company commands a market capitalization of $26.4 billion and qualifies for inclusion in IPO,” according to a statement from Renaissance Capital.
Ally Financial (NYSE: ALLY) was the most recent addition to IPO. Ally, the former unit of unit of General Motors (NYSE: GM), went public last month. IPO’s index allows for inclusion of new stocks after just five trading days, which allowed the ETF to be among the first to add shares of Twitter (NYSEArca: TWTR) last November. [IPO ETF Adds Twitter]
Other recent additions to IPO’s lineup include King Digital Entertainment (NYSE: KING), the mobile and social games maker, and IMS Health (NYSE: IMS). [Candy Crush Maker Enters IPO ETF]
Although shares of JD.com are lower by 4% Friday, the company’s successful IPO is viewed by some as a harbinger of things to come with the widely anticipated Alibaba IPO, which could come to market in August.