Chinese e-commerce giant JD.com is eyeing to list its shipping business JD Logistics in Hong Kong as it looks to ride on China’s post-coronavirus e-commerce boom.

The IPO is expected to raise around $5 billion, which would value the logistics unit at about $40 billion, Bloomberg earlier reported. If the public offering pushes through, JD.com is poised to become China’s second-most valuable delivery company after Shenzhen-listed SF Express, according to South China Morning Post.

The move comes amidst China’s e-commerce boom which saw shopping sites like JD.com and Alibaba benefit immensely as lockdowns drove consumers to shop online, spiking the demand for door-to-door deliveries.

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Spun off from JD.com in 2017, JD Logistics’ network includes over 800 warehouses across China, as well as a large fleet of robots, drones and autonomous vehicles. Despite making massive investments, JD Logistics has yet to turn a profit, SCMP noted, but its losses have significantly narrowed from last year.

Unlike its larger rival SF Express, a purely third-party delivery service provider, JD Logistics has taken a similar model as Amazon and Alibaba’s Cainiao Network, which have built up their own logistics capabilities.

One of its more ambitious plans is to build an underground smart logistics system for delivering parcels. The company stated in early 2020 it was testing the new technology in Xiongan New Area, southwest of Beijing.