ZTO Express, a China-based logistics operation backed by e-commerce group Alibaba last year, is set to raise up to $2bn in an initial public offering in the US, IFR reported today.
The company has already submitted a filing in New York requesting clearance for the IPO, in which it aims to raise between $1bn and $2bn, according to people close to the deal. It plans to float from September or October 2016.
Founded in 2002, ZTO runs a service that encompasses package delivery, logistics, e-commerce and printing, and is one of China’s largest express delivery services by package volume.
ZTO is a partner in Alibaba’s Cainiao smart logistics network, formed in 2013 to help the firm distribute its goods across the country. Alibaba owns approximately 48% of Cainiao while postal service China Post is also a shareholder.
Venture capital firm Sequoia Capital invested an undisclosed amount in ZTO in 2013.
Despite being situated in China, ZTO reportedly favours a US offering as it will likely be completed more quickly than in China, which has a substantial backlog of companies looking to go public. The proceeds will be used to support expansion, IFR stated.
Citigroup, Credit Suisse, China Renaissance, Goldman Sachs, JPMorgan and Morgan Stanley have been appointed underwriters for the IPO, though ZTO has not decided whether to float on Nasdaq or the New York Stock Exchange.
The latest news follows a report in the Wall Street Journal in February 2016 that revealed ZTO had asked banks to submit proposals for the offering.
– Image courtesy of ZTO Express