Best, a China-based supply chain services provider backed by e-commerce group Alibaba, yesterday revealed it hopes to raise $1bn in an initial public offering on the New York Stock Exchange.
The company will offer American depositary shares, though it has not set the pricing or number of shares yet. The $1bn figure marks an increase over the $750m the company initially hoped to secure when it first filed for an IPO in June.
Founded in 2007, Best operates a platform that encompasses the entire logistics and supply chain ecosystem, including last-mile delivery and value-added services. The company focuses on both the business-to-consumer and business-to-business sectors.
Proceeds will allow Best to continue developing its technology infrastructure, to build additional products and to further expand its logistics network.
Alibaba is currently the company’s largest single shareholder, holding 23.4%. Best founder Johnny Chou retains a 14.7% stake.
Remaining investors include Cainiao Smart Logistics Investment, a subsidiary of Alibaba’s parcel delivery unit Cainiao, which owns 5.6%, Florence Star Worldwide and Brackenhill Tower, which hold 11.3% between them, and IDG-Accel China Capital, which owns 6.2%.
All remaining shareholders own less than 5% each, including International Finance Corporation, the private sector-focused arm of the multilateral financial institution World Bank, which holds 0.7%.
Citigroup Global Markets, Credit Suisse Securities (USA), Goldman Sachs (Asia), Morgan Securities and Deutsche Bank Securities are acting as joint bookrunners.
Alibaba and contract manufacturer Foxconn reportedly invested $15m in Best in 2008. Walden International and CDH Investments then injected $15m in 2010.
The following year, Alibaba contributed to a $20m funding round alongside Walden subsidiary PacVen Walden Ventures, Hina Group, Denlux Logistics Invest, Hong Kong Jiashi International Group and Orchid Development Holdings.
Pacven and Florence Star Worldwide added $76.5m later in 2011, before Alibaba unit Alibaba Investment, CDH, IDG-Accel China, Hina, Broad Street Principal Investments and Brackenhill Tower supplied $137.5m in a series E round in 2014.
Alibaba Investment returned to invest $132.5m in series F-2 funding in 2015. Cainiao then participated in a $343m round in February 2016, before taking part in a $277m extension alongside nine other investors two months later.