Courier Giant SF Express Weighs Share Sale in Hong Kong
Courier Giant SF Express Said to Mull Hong Kong Share Sale
(Bloomberg) -- SF Holding Co., one of China’s largest express delivery companies, is considering raising funds through a share sale in Hong Kong, according to people familiar with the matter.
The firm, also known as SF Express, has been considering options including a second listing in Hong Kong, which could raise about $5 billion, or a Hong Kong initial public offering of its main courier business, according to the people. The Shenzhen-listed courier giant has held preliminary discussions with potential advisers on the proposed deal, the people said, asking not to be identified because the information is private.
SF Express was founded in Shunde of Guangdong province in 1993, according to its website. The company went public in Shenzhen through a so-called backdoor listing in 2017. The debut propelled its founder Wang Wei to become the third-richest person in China at the time. The tycoon is still the country’s 14th wealthiest person, according to the Bloomberg Billionaires Index.
SF Express pared losses in Shenzhen after the Bloomberg News report, ending the day 1.9% lower. Its shares have more than doubled this year as demand for parcel delivery surges because of the Covid-19 pandemic. The company has a market value of about 357.5 billion yuan ($54.4 billion).
Deliberations of any Hong Kong share sale are at a preliminary stage and SF Express could still decide not to proceed, the people said. A representative for SF Express said the company has no plans.
SF Express covers 335 prefecture-level cities and 2,835 county-level cities in China, according to its semi-annual report. Its international express business covers 71 countries overseas and owns 59 all-cargo aircraft. It provides a range of services including express, freight, cold chain, pharmaceutical and international delivery.
The company had revenue of about 109.6 billion yuan in the first nine months of 2020, a 39% jump from the same period a year earlier, according to its latest financial report. Its net income was about 5.6 billion yuan, which was around 30% higher than the same period in 2019. The courier business “SF Freight” reported revenue of 7.7 billion yuan in the first half of 2020.
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With assistance from Bloomberg