Shares of Jingdong Industrials Inc, the supply-chain unit of Chinese mainland e-commerce giant JD.com Inc, fell in their Hong Kong Special Administrative Region trading debut after a HK$2.98 billion ($383 million) initial public offering.

The stock declined as much as 10% on Thursday before paring the loss. Its performance is being closely watched amid growing skepticism in new listings after a banner year for initial public offerings in the financial hub.

The company is among the final wave of firms closing out what has been a standout year for deals in Hong Kong. Listings in the city have raised more than $34 billion this year, on track to end 2025 at a four-year high, according to data compiled by Bloomberg.

Jingdong Industrials sold 211.2 million shares at HK$14.1 apiece, the middle of a marketed range, with the IPO attracting international long-only investors, hedge funds and specialist investors in the technology, media and telecommunications sector. The retail portion was 60.5 times subscribed.

Proceeds from the IPO will be used to enhance its industrial supply-chain capabilities, including improving artificial intelligence technologies, and to support expansion, investments and acquisitions.

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Jingdong Industrials, which started its supply chain service in 2017, has become a leading player in China's maintenance, repair and operations procurement market. The company made revenues of 20.4 billion yuan ($2.89 billion) in 2024, compared with 14.1 billion yuan in 2022, according to its prospectus.

Still, the group’s reliance on JD.com is emerging as a risk amid intensifying competition among food delivery platforms. Revenue generated from JD Group’s platforms accounted for 36 percent in the first half of the year.

JD.com shares have fallen about 15 percent this year in Hong Kong, while those of JD Logistics Inc. have dropped 6 percent.