Advertisement
IPO
BusinessChina Business

China’s biggest courier SF plans Hong Kong share sale to raise up to US$3.3 billion, underscoring tech policy thaw

  • Company’s board has approved a plan to sell up to 10 per cent of post-issuance outstanding shares, according to an exchange filing on Wednesday
  • The move shows faith in the e-commerce business, adding to evidence that the worst is over for China’s regulatory crackdown on Big Tech companies

Reading Time:2 minutes
Why you can trust SCMP
0
SF Express courier boxes are seen at the company’s headquarters in Shenzhen in a 2015 file photo. Photo: Reuters
Zhang Shidongin Shanghai

SF Holding, China’s biggest parcel delivery firm by market value, plans to sell up to 540 million shares in Hong Kong as the company taps overseas funding channels following Beijing’s shift to a friendly tone towards the Big Tech platforms that contribute the bulk of the courier industry’s revenue.

The company’s board unanimously approved the plan on Tuesday to sell shares on the main board of the Hong Kong exchange, and the proposal is still pending shareholder approval, SF said in a statement to the Shenzhen exchange on Wednesday.

The size of the offering will be no more than 10 per cent of the company’s post-issuance outstanding shares, and the sale will be conducted within 18 months of the approval by shareholders, according to the statement.

Based on SF’s current 4.89 billion outstanding shares, the Hong Kong sale will be capped at 540 million shares, according to a calculation by the Post. The company could raise 24 billion yuan (US$3.3 billion) if the stock is sold at a 10 per cent discount to the closing price of its Shenzhen-listed stock on Tuesday.

Customers visit an SF Express facility in Nan Fung Plaza in Hong Kong’s Tseung Kwan O district on March 4, 2022. Photo: Dickson Lee
Customers visit an SF Express facility in Nan Fung Plaza in Hong Kong’s Tseung Kwan O district on March 4, 2022. Photo: Dickson Lee
SF’s Hong Kong offering adds to evidence that the worst may be over for the industry after a long regulatory crackdown on the Big Tech companies that operate the nation’s largest e-commerce platforms, such as Alibaba Group Holding’s Taobao. Alibaba owns the South China Morning Post.
Beijing has pivoted to a supportive stance towards such companies by acknowledging their contribution to economic growth and innovation. The nation’s top planning body laid out a 28-point notice on Tuesday to underpin the private sector, including boosting credit support and encouraging entrepreneurs to invest in strategically important industries.
Advertisement