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Chow Shing-yuk, Lalamove’s founder and CEO. Photo: David Wong

Hong Kong logistics start-up Lalamove files confidentially for US$1 billion US listing

  • Lalamove’s filing comes as logistics firms have gained popularity among investors during the coronavirus pandemic
  • Its filing follows offerings by JD Logistics and Full Truck Alliance
Hong Kong logistics start-up Lalamove has filed confidentially for an initial public offering (IPO) in the United States, becoming the latest Asian logistics unicorn to seek to tap the capital markets this year, Bloomberg reported, citing people familiar with the matter.

The company, which is known as Huolala in China, is seeking to raise at least US$1 billion in the offering, the people said. The fundraising amount and other details of offering are subject to change depending on investor demand, the people said, asking not to be identified as the information is private.

Lalamove has no specific timetable or plans for going public, a company representative said when contacted by the South China Morning Post.

The company’s filing for a potential IPO comes as logistics firms have gained popularity among investors against the backdrop of the coronavirus pandemic, with social distancing measures and lockdowns driving e-commerce higher over the past year.

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JD Logistics, a unit of Chinese e-commerce giant JD.com, raised US$3.2 billion in its IPO in Hong Kong in May, with its shares attracting a lower-than-expected premium on its first day of trading.
Full Truck Alliance, a Chinese service for freight shipping similar to Uber Technologies and known as Manbang in China, raised US$1.6 billion in its IPO this week and rose 13 per cent on its debut on the New York Stock Exchange (NYSE) on Monday.
GoGoX, formerly known as GoGoVan, a Lalamove competitor in Hong Kong, is reportedly considering a potential listing in the city. The US IPO filing by Lalamove also comes after FWD Group, the Hong Kong-based insurer backed by tycoon Richard Li Tzar-kai, chose the US over Hong Kong this month for its own IPO.

Lalamove was founded in 2013 by Chow Shing-yuk, a Stanford graduate and former professional poker player. It operates in more than 20 markets in Asia, Latin America and the US, and has a pool of more than 700,000 driver partners.

Chow said in a 2019 interview with the Post that the company had been approached by the NYSE about a potential listing, but he preferred the Hong Kong stock exchange.

“Our first choice is always [to list in] Hong Kong,” he said at the time. “I’m from Hong Kong, and I think that [the city] needs some examples of successful tech companies listing here.”

The company raised US$515 million in a Series E funding round last year, led by Sequoia Capital China and Hillhouse Capital. Bloomberg reported at the time that the company was seeking a valuation of US$8 billion following the fundraising.
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