Zhonggu Logistics, a China-based container logistics services provider backed by liner operator Zhonggu Shipping and telecommunications group SoftBank, is targeting a $218m initial public offering, DealStreetAsia reported today.
The company will issue approximately 66.7 million shares priced at RMB22.19 ($3.28) each. It will list on the main board of the Shanghai Stock Exchange.
Zhonggu Logistics owns a network of 120 container ships and provides a door-to-door logistics service to enterprise clients in China. It will use the proceeds to purchase additional containers and ships.
SB China Venture Capital (SBCVC), a corporate venturing arm of SoftBank, invested an undisclosed sum in 2017, before a commitment also of undisclosed size from Shanghai Free Trade Zone Equity Fund later the same year and a cash injection from Eastern Bell Capital in 2019.
Zhonggu Shipping will retain a 63.1% stake in the company following the flotation, while SBCVC will own 2.2% and Eastern Bell Capital will hold a 1.2% shareholding.
China International Capital Corporation has been hired as lead underwriters for the IPO.
