By Colin Kellaher

Dada Nexus Ltd., a Chinese delivery firm backed by JD.com and Walmart Inc., on Monday said it expects to sell 16.5 million American depositary shares at between $15 and $17 apiece in its U.S. initial public offering.

At the $16 midpoint of the range, the Shanghai company said it expects net proceeds of about $240.8 million, or roughly $277.7 million if the underwriters exercise their option to buy an additional 2.5 million ADSs.

Dada Nexus said it will use the bulk of the proceeds from the IPO to implement its marketing initiatives and grow its user base, and to invest in technology and research and development.

Dada Nexus said Chinese e-commerce company JD.com, which currently owns a 45.3% diluted stake, may buy up to 3.75 million ADSs in the offering, while Walmart, which currently holds a 9.5% interest, may buy about 1.9 million ADSs.

Dada Nexus said it has applied to list the ADSs on the Nasdaq Global Select Market under the symbol DADA.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

June 01, 2020 09:37 ET (13:37 GMT)