ZTO Express to Issue 45m Shares for Hong Kong Listing

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Chinese courier ZTO Express [ZTO:US] will issue 45m shares for its secondary listing on HKEX [0388:HK], as reported by 36Kr on September 16. The company has priced the offering at HKD268 per share, intending to raise up to HKD1.56bn. ZTO Express passed the listing hearing on September 11 and will start share trading on the Hong Kong bourse on September 29. Also, the firm has hired Goldman Sachs [GS:US] as an exclusive sponsor for the listing.

ZTO Express plans to use raised capital from the listing to upgrade logistics infrastructure, purchase transportation vehicles, expand the logistics ecosystem by integrating supply chain resources, etc. In 1H20, the delivery firm generated RMB10.32bn in operating revenue, compared to RMB9.99bn in a year earlier. However, its 1H20 net profit stood at RMB1.83bn, down from RMB2.05bn in 1H19. According to the published earnings reports, the top five largest couriers in China made up 75% of China’s logistics industry as of 1H20, climbing from 72.7% at year-end 2019. Specifically, ZTO Express made up 21.5% of the market, followed by Yunda Holding [002120:CH], SF Express [002352:CH], YTO Express [600233:CH] and BEST [BEST:US].

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