Update | Chinese courier SF Express to list on the Shenzhen exchange in likely HK$51.3b deal

SF Holdings, the parent company of SF Express, the biggest private courier in China, is eyeing an initial public offering on the Shenzhen Stock Exchange with a valuation of 43.3 billion yuan (HK$51.32 billion).

In what is effectively a back-door listing, Shenzhen-listed Maanshan Dingtai, the maker of rare earth alloy-coated steel wires, will take over SF Holdings via an asset swap deal which also involves a private placement of shares. On completion of the deal, subject to a final approval from the China Securities Regulatory Commission (CSRC), SF Holdings chairman Wang Wei will run the listed company, Maanshan Dingtai said in a filing on Monday.

Wang Yansong, managing director of China First Capital, an investment bank and advisory firm said: “SF seems not to be thirsty for cash, but they may worry that getting listed is more and more difficult in China, and they need to secure the listed status as smaller rivals are preparing for that.”

China has postponed IPO reforms targeting stricter post-listing supervision, after a stock market rout last June devastated market sentiment.

On the other hand, the CSRC is tightening up back-door listing verifications in a bid to curb market speculation.

SF founder Wang Wei had earlier declared having no IPO plan for his company.