Alibaba-Backed Courier to List in Hong Kong
By Joanne Chiu
One of China's biggest courier companies plans to raise up to
$1.56 billion by selling new shares in Hong Kong, joining a string
of Chinese companies obtaining a secondary listing in the city amid
The Goldman Sachs-led stock sale follows other Hong Kong
offerings by Chinese businesses that are already listed in the
U.S., including Alibaba Group Holding Ltd., JD.com Inc., NetEase
Inc. and Yum China Holdings Inc.
ZTO Express (Cayman) Inc. is the biggest express-delivery
company in China by parcel volumes, according to iResearch analysis
cited in its prospectus, with 20.6% market share in China in the
first half of this year.
ZTO Express is selling 45 million new shares, a U.S. filing on
Tuesday showed. The maximum offer price for the small part of the
stock sale reserved for individual investors is 268 Hong Kong
dollars, the equivalent of $34.57.
The final prices for this part of the deal, and for the larger
portion of shares sold to institutional investors, will depend on
market demand, although in practice both parts of the offer are
likely to be sold at the same price. It plans to set its offer
price on Sept. 22 and for its shares to start trading a week
Founded in 2002, Shanghai-based ZTO Express has tapped China's
rapidly growing demand for deliveries amid an e-commerce boom. Its
shares have risen more than 60% since it raised $1.4 billion from a
listing on the New York Stock Exchange in 2016.
Like several of its rivals, ZTO Express is backed by Alibaba,
which holds a stake of more than 8%. Alibaba, which is a major
source of business for the delivery companies, also has positions
in peers such as Best Inc., YTO Express Group Co. and Yunda Holding
The Hong Kong listings come amid rising friction between the
U.S. and China, and as policy makers in Washington move to step up
financial scrutiny of U.S.-listed Chinese companies. The city's
stock exchange has also revamped its listing rules, helping fuel a
listing spree by public Chinese companies and by large
Nasdaq-listed hotelier Huazhu Group Ltd. is raising up to $970
million by selling stock and plans to start trading in Hong Kong on
Another Alibaba affiliate, Ant Group Inc., is preparing for huge
initial public offerings in Hong Kong and Shanghai.
Write to Joanne Chiu at firstname.lastname@example.org
(END) Dow Jones Newswires
September 16, 2020 01:48 ET (05:48 GMT)
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