Best Logistics Technology, the China-based logistics service backed by e-commerce firm Alibaba and manufacturing services provider Foxconn, intends to raise up to $1bn in a US flotation, China Money Network has reported.
The company is in the process of selecting a lead bookrunner for the initial public offering, which is expected to take place in September or October 2017, according to local media reports that cited undisclosed inside sources.
Founded in 2007, Best Logistics offers a range of services including express and freight delivery, business consulting, cross-border logistics, warehousing and inventory management.
The company oversees a network of more than 660 operations centres, a distribution network that stretches across China and a range of offices and warehouses in the US, Germany, Australia, Japan and South Korea.
The IPO would follow $760m secured in a September 2016 round led by Citic Private Equity that included conglomerate Fosun, logistics company Cainiao Network, Goldman Sachs, CDH Investments and China Development Bank, and which was closed at a valuation of more than $3bn.
Alibaba and Foxconn had invested $15m in Best Logistics prior to 2009, and the former is reportedly Best Logistics’ largest shareholder, with a 22% stake. Cainiao Network is said to hold a share sized at roughly 5%.
The company’s earlier backers include IDG Capital, China Renaissance Capital Investment and Walden International.