Hong Kong delivery start-up Lalamove files for $1.35 billion US IPO

Lalamove is among a number of logistics companies going public this year.
Lalamove is among a number of logistics companies going public this year.ST PHOTO: KELVIN CHNG

HONG KONG (BLOOMBERG) - Hong Kong's on-demand logistics and delivery firm Lalamove has filed confidentially for a US initial public offering, according to people with knowledge of the matter.

The company, also known as Huolala in China, is looking to raise at least US$1 billion (S$1.35 billion) in the share sale, sources said. Details of the offering, including the fund-raising amount, are still subject to change depending on investor demand, the people said, asking not to be identified as the information is private.

"The company is paying close attention to capital markets but has no specific timeline and plan for going public," a representative for Lalamove said in a text message in response to Bloomberg News query.

Lalamove is among a number of logistics companies going public this year as the coronavirus-induced lockdowns fuelled a surge in e-commerce demand.

Chinese trucking start-up Full Truck Alliance this week raised US$1.6 billion in its US IPO and climbed 13 per cent in its debut. E-commerce giant JD.com's shipping and delivery unit JD Logistics went public in Hong Kong last month in a US$3.6 billion share sale.

Founded in 2013 by Stanford graduate and former professional poker player Chow Shing-yuk, Lalamove provides van-hailing and courier services on demand. It operates in over 20 markets across Asia, Latin America and the United States with a pool of more than 700,000 driver partners, according to its website. Lalamove's business is anchored in China.

Last year, Lalamove raised US$515 million from investors including Sequoia Capital China, Hillhouse Capital and Shunwei Capital. It had been seeking a valuation of US$8 billion at the time, Bloomberg News reported.

Its smaller rival GogoX is weighing a Hong Kong IPO that could raise US$400 million to US$500 million as soon as this year, people familiar with the matter said in March.