Indonesian courier J&T Global aims to raise US$500 million via Hong Kong’s second biggest IPO of the year

Shanghai-based J&T will sell some 300 million shares at HK$12 per share, according to a filing on the Hong Kong Exchanges and Clearing

Based on that valuation, J&T will have a post-issue market capitalisation of HK$105.75 billion (US$13.5 billion)

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Published: 10:08am, 16 Oct 2023Updated: 4:33pm, 16 Oct 2023

Asian courier services start-up J&T Global Express said on Monday it planned to raise up to HK$3.92 billion (US$500.97 million) in Hong Kong, in what is set to be the Hong Kong stock exchange’s second-largest initial public offering (IPO) of the year.

Shanghai-based J&T will sell some 326.6 million shares at HK$12 per share, according to a filing on the Hong Kong exchange website. It is set to list on Thursday, with settlement expected to be on October 27.

Based on that valuation, J&T will have a post-issue market capitalisation of HK$105.75 billion (US$13.5 billion), according to its prospectus. The IPO target is far short of the US$1 billion the courier had originally hoped to raise, but the smaller size follows sluggish market conditions and weaker investor sentiment.

Share listings in Hong Kong in the first nine months of 2023 raised the smallest pile of funds in 20 years, according to data company Refinitiv. The city’s bourse was placed in the ninth position in global ranking of IPO venues, with a total of 42 companies raising US$3.13 billion by the end of the third quarter.

J&T Express in Mexico. Photo: J&T Express

In April, China’s fourth-largest baijiu distiller ZJLD Group raised HK$5.3 billion via Hong Kong’s biggest IPO this year.

J&T said the funds raised will go toward expanding its logistics network, improving infrastructure, strengthening sorting and warehouse capacity and capabilities in the Southeast Asia and other existing markets.