JD.com is the second largest Chinese E-commerce company after Alibaba. And with such great power, comes great finances. The logistic arm of the company is contacting banks for a potential IPO of $10 billion dollars. The team is targeting a valuation of a staggering $30 billion, according to a Reuters report.

After Alibaba’s recent blockbuster Hong Kong IPO (which was the company’s second IPO by the way), JD.com will become the second Chinese company looking at yet another massive IPO.

Banks for this IPO are to be selected in the second quarter of 2020. The process can take place in the second half of 2020, with the listing taking place in either Hong Kong or New York. However, neither the time nor the venue has been selected yet. The money raised will be used for warehouse expansion and potential acquisition purposes.

JD.Com has declined to comment on the matter.

The company decided to make its logical unit a separate entity in 2017. With this, the company opened its warehouses and delivery services for third party companies. The unit in turn raised about $2.5 billion in 2018 from Hillhouse Capital Group, Sequoia Capital China, China Merchants Group, Tencent Holdings, and China Life Insurance.

The company has been growing at a rapid pace and its competitors are getting worried. That is why, the company’s biggest competitor Alibaba has started following its footsteps. JD generates greater revenue but at a much lower margin. While Alibaba charges listing fees and and commissions for third party sellers, JD has a more direct approach and fulfills orders with its logistics team. However, over the years, Alibaba has also expanded into the direct retail market.