J&T Global Express, a logistics service company backed by Tencent, is looking to tap into Hong Kong investors' appetite with a share offering worth HKD 3.92 billion ($500.80 million).
Share Offering Details
The company plans to sell 326.55 million shares at a price of HKD 12 each in its initial public offering.
Expanding Presence and Revenue Growth
Having started operations in Indonesia in 2015, J&T Global now offers express delivery services in 13 countries across Southeast Asia, Saudi Arabia, the United Arab Emirates, Mexico, Brazil, and Egypt.
For the six months ended June, the company reported revenue of US$4.03 billion, representing an 18.5% growth compared to the same period last year.
Tencent is not the only notable investor in J&T Global. Private-equity firms Hillhouse Capital and Sequoia Capital, as well as Temasek (Singapore's sovereign wealth fund), have also invested in the company prior to its IPO.
Trading Debut and Use of Proceeds
J&T Global expects its shares to commence trading on the Hong Kong exchange on October 27.
The company plans to utilize the proceeds from the IPO to expand its logistics networks, venture into new markets, and boost its research and development efforts.
Joint Sponsors for the IPO
Morgan Stanley, BofA Securities, and CICC are among the banks acting as joint sponsors for J&T Global's IPO.