Indonesian courier J&T Global aims to raise US$500 million via Hong Kong’s second biggest IPO of the year
Indonesian courier services start-up J&T Global Express said on Monday it planned to raise up to HK$3.92 billion (US$500.97 million) in Hong Kong, in what is set to be the Hong Kong stock exchange’s second-largest initial public offering (IPO) of the year.
Jakarta-based J&T will sell some 300 million shares at HK$12 per share, according to a filing on the Hong Kong Exchanges and Clearing. It is set to list on Thursday, with settlement expected to be on October 27.
Based on that valuation, J&T will have a post-issue market capitalisation of HK$105.75 billion (US$13.5 billion), according to its prospectus. The IPO target is far short of the US$1 billion the courier had originally hoped to raise, but the smaller size follows sluggish market conditions and weaker investor sentiment.
Share listings in Hong Kong in the first nine months of 2023 raised the smallest pile of funds in 20 years, according to data company Refinitiv. The city’s bourse was placed in the ninth position in global ranking of IPO venues, with a total of 42 companies raising US$3.13 billion by the end of the third quarter.
J&T Express in Mexico. Photo: J&T Express
In June, China’s fourth-largest baijiu distiller ZJLD Group raised HK$5.3 billion via Hong Kong’s biggest IPO this year.
J&T said the funds raised will go toward expanding its logistics network, improving infrastructure, strengthening sorting and warehouse capacity and capabilities in the Southeast Asia and other existing markets.
It also plans to use the funds raised to finance expansion into new markets, research and development besides spending on general corporate purposes and working capital.
Cornerstone investors, including Tencent, SF Express and Sequoia will invest a total of US$236.6 million. D1 Capital, Boyu, Aspex, Hillhouse, Temasek and GLP are the other cornerstone investors.
J&T has appointed Morgan Stanley Asia, Bank of America Securities and China International Capital Corp Hong Kong Securities as overall coordinators of its Hong Kong IPO.
J&T was established in 2015 by entrepreneurs Tony Chen Mingyong, founder and chief executive of Chinese smartphone maker Oppo, and Jet Li Jie, who serves as chairman and chief executive of the courier company.
The company is known for its low-cost service and was the top express delivery operator last year in Southeast Asia, where it held 22.5 per cent share of the market in terms of parcel volume, according to Frost & Sullivan.
The firm has steadily expanded its international operations, in a variety of countries including Latin America, United Arab Emirates and Egypt.
Chinese baijiu distillery ZJLD raised US$676.4 million in April, the biggest IPO in Hong Kong in the first half of this year.
Another logistics company in the works is Alibaba’s Cainiao, which is aiming to raise at least US$1 billion, subject to market conditions, according to sources. Also in the IPO pipeline is Tencent Holdings-backed vehicle services platform Tuhu Car, which is expected to raised some US$400 million.
