JD.com's IPO Prospectus Comes With Too Much Candor

Chinese online retailer JD.com filed the prospectus for its planned $1.5 billion U.S. public offering with the Securities and Exchange Commission. Apparently, the paperwork came with too much honesty, according to some observers. It detailed the company’s lack of experience in doing some of its businesses, such as Internet finance. It highlighted losses suffered by the company and warned potential investors it might not be able to make money. Also, the company admitted it is huddled by weak internal fraud controls and its financial reports may not be accurate. Its very strong sales growth, however, is expected to attract US investors. That is, if the company could overcome potential legal roadblocks and could actually get its shares listed in the country.