Chinese logistics company Best Inc launches IPO on New York Stock Exchange
Chinese logistics company Best Inc launches IPO on New York Stock Exchange in an attempt to raise 930 million USD. The money aim to finance the expansion of its supply chain network. The Hangzhou-based company, led by Johnny Chou, plans to be listed on the New York Stock Exchange. It is expected that the company will be valued at more than 5.7 billion USD.
In June, the company announced it aims to raise up to 750 million USD in primary public offerings, but in August it increased its supply, highlighting the demand for strong demand.
China is the world’s largest logistics market with revenues of 1.6 trillion USD in 2016 and expecting the demand for express delivery services to increase by 17.9% per year in the six years to 2021.
The company’s share in the Chinese express delivery market has grown to 8.6% in the six months to June 2017 compared to 2.7% in 2012.
The IPO of Best Inc is expected to be on September 20th.
The company plans to use 300 million USD to expand the network of logistics centers and another 100 million USD in technology investments. The balance will be used for general corporate purposes and potential acquisitions.