Alibaba-Backed Courier to List in Hong Kong
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 U.S.-China tensions.
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 later.