Chinese courier SF Holding starts trading after $1.01 billion HK IPO
Sign up now: Get ST's newsletters delivered to your inbox
In grey-market trading on Nov 26, China’s biggest express delivery firm jumped as much as 5.5 per cent from its issue price of HK$34.30 before erasing gains.
PHOTO: REUTERS
Follow topic:
HONG KONG – China’s SF Holding’s shares debuted in Hong Kong on Nov 27, in what is expected to be the city’s final test for major listings for 2024.
In grey-market trading on Nov 26, China’s biggest express delivery firm jumped as much as 5.5 per cent from its issue price of HK$34.30, which stood in the middle of the marketed range, before erasing gains. The HK$5.83 billion (S$1.01 billion) listing is Hong Kong’s second largest in 2024 after appliance maker Midea Group’s US$4.6 billion (S$6.2 billion) debut.
The deal came as sentiment shifted on Chinese equities following Beijing’s stimulus blitz in late September. Investor mood, however, has started souring again amid disappointment over further fiscal measures and Donald Trump’s US election win in November, which rekindled concerns on trade tensions.
SF’s listing drew about US$205 million from cornerstone investors, which agreed to hold shares for at least six months in exchange for guaranteed allocation. Backing for the initial public offering also came from entities tied to Hong Kong property investors.
Founded in 1993 in the southern province of Guangdong, SF is the largest of a coterie of Chinese logistics players that rode the boom of online commerce over the past few years. In partnership with industry leaders like Alibaba Group and JD.com, SF has grown into a full-fledged FedEx-like behemoth both at home and around the world.
The issue price stood at roughly a 25 per cent discount to its share price in mainland China, before SF started taking orders from investors. Other listings expected in the coming year include those of condiment maker Foshan Haitian Flavouring & Food and drugmaker Jiangsu Hengrui Pharmaceuticals, Bloomberg News reported.
Goldman Sachs Group, Huatai Securities and JPMorgan Chase are joint sponsors of the offering. BLOOMBERG
