Alibaba-backed Best Logistics sets IPO price range for US$932m New York listing
China is the world’s largest delivery service market, with parcel volumes accounting for 40 per cent of the world’s in 2016
Best Logistics, an Alibaba-backed Chinese delivery firm, plans to offer 62.1 million shares at a price range between US$13 to US$15 apiece in its New York initial public offering, which would make the flotation the biggest among US listings of Chinese companies so far this year.
Hangzhou-based Best Logistics, which will trade under the name of Best Inc. in the US, plans to issue 53.56 million American depositary shares (ADS) and the selling shareholders will offer 8.54 million ADS, according to its filing to the US Securities and Exchange Commission on Thursday morning.
Estimated at between US$807 million to US$932 million in size, the flotation will be the biggest US listing of a Chinese company since last October, when ZTO Express raised US$1.4 billion. It is also the seventh such listing this year.
Best said it will use net proceeds from the offering for continued investments in technology infrastructure and development of additional services and solutions, further expansion in logistics and supply chain service network, and the balance for general corporate purposes.
The biggest shareholder of Best is Alibaba, which holds a 23.4 per cent stake through Alibaba Investment and Cainiao Smart Logistics Investment. Alibaba owns the South China Morning Post.
Shao-ning Johnny Chou, who founded Best in 2007 after leaving Google where he held the position of co-head of China, owns a 14.7 per cent stake.