EqualOcean has learned that J&T Global Express Limited(hereinafter referred to as "J&T Express")(极兔速递) opened its IPO on October 16th and closed on October 19th, and plans to be listed on the Main Board of the Hong Kong Stock Exchange on October 27th under the stock code of "1519".
Founded in 2015, J&T Express is a global integrated logistics service operator with a leading position in the world's largest and fastest-growing markets of Southeast Asia and China. The company's express network covers 13 countries, including Indonesia, Vietnam, Malaysia, the Philippines, Thailand, Cambodia, Singapore, China, Saudi Arabia, the United Arab Emirates, Mexico, Brazil and Egypt.
According to its official website, as of June 30, 2023, the company currently has 104 regional agents and about 8,700 network partners, operates 265 transshipment centers, and owns more than 8,400 mainline transport vehicles, including more than 4,400 of its own mainline transport vehicles. In addition, the company has approximately 3,900 trunk transportation routes and more than 18,600 collection and delivery points. Through cooperation with international and local partners, the company is able to provide cross-border logistics services covering 86 countries and regions, including the United States, Canada, Brazil, Mexico, Germany, the Netherlands, Italy, the United Kingdom, France, India, the United Arab Emirates, Singapore, Egypt and Nigeria.
EqualOcean reviewed data from The Business Research and found that the global express delivery market size will grow from USD 277.04 billion in 2022 to USD 303.84 billion in 2023, at a compound annual growth rate (CAGR) of 9.7%, and is projected to increase to USD 401.11 billion in 2027, at a compound CAGR of 7.25 The rapid growth of the e-commerce industry has contributed significantly to the growth of the express delivery market.
The huge development potential of the express delivery market has attracted a large number of companies at home and abroad to enter the field. Domestically, there are SF Express(顺丰快递), ShenTong Express(申通快递), YuanTong Express(圆通快递), etc. Overseas, there are Aramex, BEST Inc. and DB Schenker.
This IPO has raised a net amount of approximately HKD 3.5279 billion. Aspex Management, Boyu Capital(博裕资本), D1 Capital, GLP, Sequoia Capital(红杉), SF Express, Temasek, Tencent(腾讯), and Hillhouse Capital, these 9 existing investors, have participated as cornerstone investors in this offering with a total subscription amount of USD 199.5 million. J&T Express stated that approximately 30% of the funds raised will be used to expand the logistics network, upgrade infrastructure, and strengthen sorting, warehousing capabilities, and capacity in Southeast Asia and other existing markets. Approximately 30% will be allocated to explore new markets and expand service scope. Around 30% will be dedicated to research and technological innovation. The remaining 10% will be used for general corporate purposes and operational capital requirements.