Chinese delivery giant SF Holdings files for secondary listing in Hong Kong

SF Holding, the categorical supply big headed by billionaire Wang Wei, has filed for a secondary itemizing in Hong Kong to fund the corporate’s abroad enlargement and strengthen its community in China.

The corporate, which already trades on the Shenzhen Inventory Trade, didn’t disclose the scale or timing of the itemizing within the preliminary prospectus filed on Monday. SF Holding is claimed to be planning to boost as much as $3 billion, in keeping with Bloomberg Information. a report.

The itemizing proceeds shall be used for SF Holding’s worldwide enlargement, adopted by plans to spice up its logistics community and repair choices in China, in keeping with the prospectus.

Based in 1993 in Shunde, Guangdong Province, the supply big already has operations in additional than 200 nations and areas, however income from mainland China nonetheless accounts for practically 80% of its 267.5 billion yuan ($36.9 billion) in gross sales final 12 months. . . The corporate’s income amounted to $973.8 million in the identical interval.

“Trying to the longer term, we goal to grow to be the main world logistics firm and join Asia to the world,” the corporate mentioned in its prospectus.

To realize this objective, SF Holding might want to compete not solely with world behemoths, resembling FedEx and United Parcel Service, but in addition fellow Chinese language supply firms searching for a bigger share of the worldwide logistics market.

For instance, billionaire Jet Li’s firm J&T Specific plans to listing in Hong Kong as effectively. Backed by buyers resembling Chinese language net big Tencent, the corporate is the most important categorical supply operator in Southeast Asia, in keeping with knowledge from Frost & Sullivan cited in its preliminary prospectus. Cainiao, the logistics subsidiary of Chinese language e-commerce big Alibaba, can also be busy investing billions of {dollars} to construct warehouses and different infrastructure overseas because it prepares for an preliminary public providing that will additionally happen in Hong Kong.

With Wang as Chairman of the Board, SF Holding has managed to face out in a extremely aggressive market by providing what it calls “on-time categorical companies.” Not like its counterparts who usually outsource bundle supply to native franchisees or companions, the corporate works with its personal staff in addition to a fleet of plane and supply automobiles to make sure same-day or next-day supply.

It is a technique that helped the low-profile billionaire persuade customers in addition to companies to pay extra courier charges for time-sensitive deliveries, pushing his market capitalization to a excessive of $73.8 billion in February 2021. That very same 12 months, the corporate acquired Kerry Logistics of entrepreneur Robert Cook dinner in a $2.3 billion deal to spice up its world enlargement.

However issues haven’t been easy crusing since then. buyers I started to dump The corporate shares after projecting large losses as a consequence of its investments in new enterprise within the first quarter of 2021. The inventory has by no means been capable of totally recoup the losses, dropping one other 23.3% this 12 months alone with elevated competitors and a weaker Chinese language financial system. Prospects affect the corporate’s outlook. Wang’s fortune, which is predicated on his roughly two-thirds possession in SF Holding, is at present estimated at $17.6 billion.

The billionaire’s latest initiatives embody launching a low-cost, time-insensitive service referred to as Specific Economic system. The corporate expenses as much as 30 US cents per bundle, in comparison with a mean of $2.10 for the corporate’s different product choices, in keeping with the prospectus.

However the firm’s low revenue margins have grow to be a priority for buyers, and maybe even for Wang himself. In Could, it’s Sold Fengwang Data, a subsidiary that supplied cheaper deliveries, to billionaire Li’s J&T Specific for $173 million.

“We imagine diminished publicity to this extremely aggressive sector could help a future SF margin restoration,” analysts at analysis agency Fairness Capital Markets mentioned in an Aug. 9 notice revealed through Smartkarma, including that the corporate has “de-focused on cheap floor parcel service.” Within the final years.”

(tags for translation)Wang Wei

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