Chinese e-commerce giant JD.com Inc. said it plans to spin off its JD Logistics shipping business in a listing on the Hong Kong Stock Exchange.

The unit may be valued at about $40 billion, people familiar with the matter had said previously. JD.com will remain a majority shareholder and will realise value from the business in the listing, the company said in a regulatory filing. Details of the proposed spinoff haven’t been finalised, the company said.

Global Covid-19 lockdowns have accelerated a surge in demand for logistics services, as the pandemic kept shoppers out of physical stores and boosted online demand.

Chinese e-commerce sales have increased several-fold during this period, making companies that help handle shipping and deliveries particularly attractive, Elysia Tse, head of Asia Pacific research and strategy at LaSalle Investment Management, said in an interview with Bloomberg Television earlier this month.

JD.com made the logistics business, which offers warehousing and distribution services, a separate entity in 2017. JD Logistics operated more than 800 warehouses across China as of Sept. 30.

By Amy Thomson.