Tencent-Backed Logistics Company Seeks To Bag $500M With Hong Kong IPO

J&T Global Express, a logistics firm backed by Tencent, is planning a share offering worth 3.92 billion Hong Kong dollars ($500.80 million) in Hong Kong.

As The Wall Street Journal reported, the company is set to sell around 326.55 million shares at HK$12($1.53) each in an initial public offering. This announcement comes in the wake of Alibaba Group’s e-commerce logistics arm, Cainiao Smart Logistics Network, filing for a public offering last month,

Originating in Indonesia in 2015, J&T Global Express currently provides express delivery services in 13 countries, spanning Southeast Asia, Saudi Arabia, the United Arab Emirates, Mexico, Brazil, and Egypt. The firm saw revenue growth of 18.5% to $4.03 billion for the six months ending in June, compared to the same period last year.

See Also: Crypto Analyst Predicts Bitcoin’s Imminent Surge, Foresees 150% Jump And Bullish Trends For Chainlink, Avalanche

Apart from Tencent, the pre-IPO investors of J&T Global include private equity firms Hillhouse Capital and Sequoia Capital, along with Temasek, Singapore’s sovereign wealth fund. The company anticipates its shares to commence trading on the Hong Kong exchange on Oct. 27.

J&T Global intends to utilize the proceeds from the IPO to broaden its logistics networks, explore new markets, and invest in research and development. Morgan Stanley, BofA Securities, and CICC are acting as joint sponsors for the IPO.

Read Next: Anthony Scaramucci Says Bitcoin Will Have ‘Value Over Time,’ Could Hit $150K To $250K On BTC ETF Launch

Image via Shutterstock


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