SF Express raises US$1.2b to buy airplanes and boost technologies
The funds are raised through a share placement with eight institutions including Guotai Junan and Penghua Fund Management
SF Express, one of China’s largest logistics service providers, has raised 8 billion yuan (US$1.2 billion) through a share placement amid its plan to expand the fleet of air carriers and bolster international businesses.
The company controlled by billionaire Wang Wei sold 227 million shares to 8 institutional investors at 35.19 yuan apiece, it said in a filing to the Shenzhen Stock Exchange.
The offering price represented an estimated 32 per cent discount to its closing price of 51.94 yuan on Monday.
“The fundraising was part of SF’s strategy of becoming a global player and a technology-driven logistics business,” said Zhao Xiaomin, an angel investor and independent researcher in China’s logistics sector.
“SF is likely to raise more funds via equity financing or debt sales to better tap the booming e-commerce business.”
SF, along with its domestic rivals YTO Express, STO Express and Yunda Express completed their backdoor listings on the A-share market over the past year, as they revved up expansions to meetincreasing express delivery demand arising from the e-commerce businesses.