Shanghai YTO Express, a China-based logistics company backed by e-commerce group Alibaba, is set to list through a reverse merger that will value it at RMB 17.5bn ($2.7bn), according to a securities filing today.
YTO will be acquired by Shanghai-listed clothing manufacturer Dalian Dayang Trands in an all-share deal that will involve Dayang transferring its assets to YTO’s shareholders, which will hold 51% of the combined company.
Founded in 2000, YTO provides a range of package courier services, offering same-day regional delivery, next-day nationwide delivery and international delivery of small parcels.
Alibaba and Yunfeng Capital invested an undisclosed amount in the company in May 2015, taking a combined stake of 20% in a deal that involved Alibaba’s logistics affiliate, Cainiao, providing strategic assistance for logistics management and less centralised destinations.
Cainiao is itself planning an initial public offering some time in the future, while another of China’s major players, Shentong Express (STO), listed in December 2015 through a reverse merger with valve producer Zhejiang IDC Fluid Control.
Two other China-based logistics services, SF Express and ZTO Express, are reported to be eyeing their own initial public offerings.