Following the rumors of SF Express’s (顺丰) possible second listing in Hong Kong and Alibaba’s (阿里巴巴) plan to spin off Cainiao (菜鸟) and seek an independent listing, the “listing craze” in the logistics industry in 2023 ushered in a new participant — J&T Express (极兔速递).
J&T submitted listing application documents to the Hong Kong Stock Exchange a few days ago. The company, whose full name is J&T Global Express Limited, plans to raise between USD 500 million and USD 1 billion through this IPO. Morgan Stanley, Bank of America, and CICC (中金公司) will act as the joint sponsors for J&T's listing. The company is expected to go public as soon as this year.
Hong Kong's IPO market is facing challenges from a weak recovery as J&T plans to list in Hong Kong. According to Wind, as of June 15, the number of IPOs in Hong Kong has increased year-on-year this year. A total of 26 stocks have been listed (excluding the two listed stocks), but the amount of funds raised has declined, totaling about HKD 13 billion. In contrast, only 16 stocks were listed in the same period last year, but the number of funds raised reached HKD 14 billion. However, PwC predicts that the Hong Kong IPO market is expected to gradually recover in the second half of the year.
The prospectus shows that in recent years, J&T’s revenue has grown rapidly, but the year-on-year growth rate of revenue is declining. The data shows that the year-on-year growth rate of revenue in 2020, 2021, and 2022 will be 357.7%, 216%, and 49.8% respectively. At the same time, in 2020, 2021, and 2022, although its revenue will be USD 1.535 billion, USD 4.852 billion, and USD 7.267 billion respectively, which will increase by 3.73 times in three years, its net profit will turn around in 2022. The profits for the period were -USD 664 million, -USD 6.192 billion, and USD 1.573 billion, respectively.
J&T's effort to land on the Hong Kong stock market this time is a key step in its strategic layout. This move will provide J&T with sufficient financial support and market recognition, laying a solid foundation for its greater achievements in the express delivery industry, and will also have a broad and far-reaching impact on the entire industry.
J&T currently deployed express delivery networks in China, Singapore, Thailand, Malaysia, the United Arab Emirates, Brazil, and other countries. J&T has gone through several rounds of financing, with investors including Tencent (腾讯), Boyu Capital (博裕), ATM Capital, Hillhouse (高瓴), Sequoia (红杉), Temasek, and many others.