ZTO Express (Cayman), a China based NYSE- listed delivery firm, plans to raise up to HK$12.1 billion in Hong Kong secondary listing, media reports said. The move comes at a time when the US and China trade war is intensifying.
It is reported that the company is seeking retail investors to sell 2.25 million shares out of 45 million shares, which represents 5 percent of its global offerings. ZTO Express has floated an option to sell 6.75 million additional shares as part of the plan.
The offering price of each share is HK$268, which represents a 10 percent on the company’s recent closing prices of the share in NYSE. The company will price its secondary listing on September 22, while trading is expected to begin in Hong Kong from September 29 with shares representing the 2057 symbol.
ZTO Express plans to use the share sale to boost its infrastructure and capacity while bolstering its global network to expand its presence in the logistics space. It is reported that the company’s delivery network covers 99.2 percent of cities and counties across China.
The company’s profit slumped 10.9 percent to 1.82 billion yuan in the first quarter compared to 2 billion yuan in the same period of 2019. The company’s profits rose 29 percent to 5.67 billion yuan in 2019 compared to 4.39 billion yuan in 2018.
The Covid-19 has walloped many logistics startups across Southeast Asia. The companies will have to find new ways to remain afloat in the market.