Cross-border Service Provider De Well Holdings Limited Receives Notice for Listing

Industrials Author: EqualOcean News, Jiahui Liao Editor: Yiru Qian May 06, 2024 06:06 PM (GMT+8)

De Well Holdings Limited is shifting from the Hong Kong stock market to the U.S. stock market, with Cainiao holding approximately 30% of the shares.

Supply chain

On April 30, the International Cooperation Department of the China Securities Regulatory Commission disclosed the overseas issuance and listing filing notice for De Well Holdings Limited. According to the filing notice, De Well Holdings plans to issue no more than 299,054,373 common shares and list on the Nasdaq Stock Market or the New York Stock Exchange in the United States, aiming to further broaden its financing channels and enhance brand awareness.

This move signifies an important step for De Well Holdings Limited in the capital market, laying a solid foundation for its further expansion of international business and the enhancement of brand influence. At the same time, it represents another initiative by the China Securities Regulatory Commission to actively promote openness to the outside world and support high-quality enterprises in entering the international market.

This is a rare case of a company "shifting from Hong Kong to the U.S." for listing in the past year. It is understood that on April 27, 2022, De Well Holdings submitted a prospectus to the Hong Kong Stock Exchange, with Citigroup and China International Capital Corporation acting as joint sponsors. Subsequently, the status of the listing application materials became "invalid."

Established in 1992, De Well Holdings, as an end-to-end cross-border supply chain solution service provider, has now established offices in Shanghai, Los Angeles, Frankfurt, Vietnam, Malaysia, Thailand, and other locations, with services covering ocean freight logistics, air freight logistics, and fulfillment value-added services.

According to Frost & Sullivan's data, based on 2021 revenue, De Well Holdings is the largest end-to-end cross-border supply chain solution service provider in the Asia-North America trade route. Based on revenue growth from 2019 to 2021, De Well Holdings is also one of the fastest-growing end-to-end cross-border supply chain solution service providers in China.

Furthermore, De Well has established close business relationships with Alibaba (China) and Cainiao Group. The company is committed to improving services through technology and has developed a comprehensive cloud-based technological infrastructure, including multiple independently developed management systems based on advanced logistics operation platforms, collectively referred to as DWMS, achieving comprehensive digitization of business operations and internal management. In September 2021, Cainiao invested approximately USD 67.22 million in De Well Holdings, holding 29.5% of De Well Holdings' shares before the IPO, making it the largest external investor.