China Logistics Company Raises $1.4 Billion in U.S. IPO
October 26 2016 - 11:50PM
Dow Jones News
HONG KONG—A Shanghai-based logistics company tied to China's
booming online-shopping industry has raised $1.4 billion in the
largest U.S. initial public offering this year, according to people
familiar with the matter.
ZTO Express Inc., which delivers parcels for businesses
including Chinese e-commerce giants Alibaba Group Holding Ltd. and
JD.com Inc., agreed late Wednesday to sell 72.1 million shares at
$19.50 a share, the people said. On Friday, the offer's indicative
range was set at $16.50 to $18.50 a share ahead of the company's
global roadshow.
The offer, which could rise to $1.6 billion if an overallotment
option is fully exercised, is in excess of the $1.3 billion raised
by Japanese messaging-app operator Line Corp. in its New York and
Tokyo IPO in July.
ZTO's offering is also the biggest IPO of a Chinese company in
the U.S. since Alibaba raised $25 billion in New York in 2014.
ZTO is set to list its shares on the New York Stock Exchange on
Thursday.
A spokesman for ZTO declined to comment.
ZTO plans to use most of the money from the IPO to purchase
land, build facilities and buy equipment to expand its sorting
capacity. It intends to use the rest of the proceeds to acquire
more trucks, invest in information technology and for potential
strategic transactions.
Morgan Stanley and Goldman Sachs Group Inc. are lead managers
for the IPO. China Renaissance, Citigroup Inc., Credit Suisse Group
AG and J.P. Morgan Chase & Co. are also working on the
offering.
Write to Alec Macfarlane at Alec.Macfarlane@wsj.com
(END) Dow Jones Newswires
October 26, 2016 23:35 ET (03:35 GMT)
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