ZTO Express eyes largest Chinese company U.S. IPO since Alibaba
- Wall Street again marks new highs in post-election run
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
- Restoration Hardware (RH) Tops Q3 EPS by 4c; Guides Well Below the Street
- Unusual 11 Mid-Day Movers 12/8: (COOL) (TLRD) (DRAM) Higher; (SHIP) (OHRP) (MLSS) Lower
- After-Hours Stock Movers 12/08: (FNSR) (AVGO) (GLPG) Higher; (XTLY) (RH) (DLTH) Lower (more...)
Employees work at a sorting centre of Zhongtong (ZTO) Express ahead of the Singles Day shopping festival, Chaoyang District, Beijing, November 8, 2015. REUTERS/Jason Lee
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
(Reuters) - Logistics company ZTO Express has set terms for what could be the largest U.S. initial public offering this year and also the biggest by a Chinese company after the $25 billion IPO of e-commerce giant Alibaba Group Holding Ltd (NYSE: BABA) in 2014.
ZTO's IPO later this month, which could raise as much as $1.5 billion, is the latest example of a Chinese company seeking to capitalize on its growth prospects to lure Western investors, while also avoiding the red tape associated with launching IPOs in mainland China.
China is the world's largest express delivery market, with 21 billion parcels delivered in 2015, according to market research firm iResearch, cited in the IPO prospectus of ZTO. This is approximately 1.5 times the total parcel volume of the United States.
ZTO said in a regulatory filing on Friday that it expected to sell 72.1 million American depositary shares in the range of $16.50 to $18.50.
Sources close to ZTO told Thomson Reuters publication IFR earlier this year the company was eyeing a U.S. listing for a faster completion and to make it easier for existing shareholders to monetizes their stakes.
A consortium of investors including Hillhouse Capital Management Ltd of Hong Kong and private equity firm Warburg Pincus LLC invested in the company in 2015.
Founded in 2002, ZTO is a major player in China's quickly expanding e-commerce market. It delivers parcels for Alibaba and JD.com Inc (NASDAQ: JD), among others.
ZTO delivered roughly 14 percent of all parcels in China last year, according to its IPO prospectus.
Sales of ZTO jumped to RMB 6.1 billion ($915.8 million) in 2015, up from RMB 3.9 billion in 2014. Its net income was RMB 1.3 billion ($200.4 million). It has roughly 7,700 network partners and 74 sorting hubs.
ZTO will use the proceeds from its offering to buy more trucks, expand capacity through the purchase of land, facilities and equipment and for other general corporate purposes.
ZTO intends to list on the New York Stock Exchange (NYSE) under the ticker ZTO.
(Reporting by Lauren Hirsch in New York; Editing by Bill Trott)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Third-Party Said Interested in PrivateBancorp (PVTB) as CIBC (CM) Deal is Delayed
- Japan ratifies TPP trade pact to fly the flag for free trade
- Oil extends gains on hopes for non-OPEC output cuts
Create E-mail Alert Related CategoriesReuters
Related EntitiesGoldman Sachs, Morgan Stanley, Warburg Pincus, IPO
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!