Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Alibaba-backed Best to list delivery business in Hong Kong - sources

08/12/2020 | 04:09am EDT
FILE PHOTO: The logo of the Chinese logistics company Best Inc is seen outside a local delivery hub in Beijing

Alibaba-backed Best Inc is seeking a Hong Kong listing for its express delivery and freight delivery businesses, keen to boost its valuation and establish an investor base closer to China, said three sources with knowledge of the matter.

The plans by Best, which went public in New York in 2017 and has a market value of $1.8 billion, are preliminary and the offering size and target valuation have yet to be determined, said the sources, speaking on condition of anonymity as the information was private.

The Hangzhou-based company, which has been unhappy with its New York valuation, decided not to include smaller units such as its supply chain management and cloud businesses in the Hong Kong listing as seeking a valuation for just the two delivery units would be more straightforward, one of the sources said

The two units brought in nearly $4 billion in revenue last year, around 80% of the company's overall revenue.

The move also comes amid escalating geo-political tensions between the United States and China and tightening scrutiny of U.S.-listed Chinese firms. Those uncertainties have prompted a number of Chinese companies to seek a second listing in Hong Kong.

Best has tapped Credit Suisse and JPMorgan to lead the listing process, said the sources. One source said the float could take place as soon as this year.

Best and the banks declined to comment.

Alibaba Group Holding Ltd, Best's biggest shareholder, has endorsed the listing plan and would also consider investing in the float, said one of the people.

The e-commerce giant, which in June increased its stake in Best to 33% via a $150 million convertible bond, also declined to comment.

Alibaba's interest in the float would mark another effort to gain more say in the world's biggest logistics market which is rapidly growing but remains highly fragmented.

Alibaba also has stakes in four other Chinese couriers - STO Express Co Ltd, YTO Express Group Co Ltd, ZTO Express (Cayman) Inc and Yunda Holding Co Ltd.

Best, led by founder and CEO Johnny Chou, a former Google executive, posted a 20.5% drop in first-quarter revenue from a year earlier and a net loss of 751 million yuan ($108 million), hit hard by the fallout from the COVID-19 pandemic.

Goldman Sachs is also an investor in Best, according to the Chinese company's 2019 annual report.

Best's shares have fallen 18% so far this year. In contrast, the S&P/BNY Mellon China Select ADR Index, which tracks Chinese firms listed in New York, has gained 16% over the same period.

By Julie Zhu and Kane Wu


ę Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED 1.09% 213.94 Delayed Quote.-9.06%
ALPHABET INC. 0.77% 2448.91 Delayed Quote.38.66%
BEST INC. -3.03% 1.28 Delayed Quote.-35.29%
CREDIT SUISSE GROUP AG -0.29% 9.574 Delayed Quote.-16.02%
JPMORGAN CHASE & CO. -1.70% 157.57 Delayed Quote.26.14%
STO EXPRESS CO.,LTD. 1.65% 8.02 End-of-day quote.-20.44%
THE GOLDMAN SACHS GROUP, INC. -1.36% 372.92 Delayed Quote.43.36%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) 0.21% 6.4045 Delayed Quote.-1.60%
YTO EXPRESS GROUP CO.,LTD. -0.19% 10.53 End-of-day quote.-8.43%
YUNDA HOLDING CO., LTD. 0.00% 13.9 End-of-day quote.-11.46%
Latest news "Economy & Forex"
04:52pSuriname bondholders trigger "termination" clause
RE
04:50pEnergy Shares Fall as Oil Prices Were Mixed -- Energy Roundup
DJ
04:48pStocks tread water as investors await Fed policy insights
RE
04:41pEgypt upholds death sentence for 12 senior Muslim Brotherhood figures
RE
04:40pBrutal heatwave to descend on U.S. West, prompting fire warnings
RE
04:34pS&P 500, Nasdaq hit record closing peaks on eve of Fed meeting
RE
04:34pOil steadies after hitting 2-yr high as demand hopes face supply growth
RE
04:32pTESLAá : Stocks tread water as investors await Fed policy insights
RE
04:26pDisney CEO says 40% of upfront ad sales went to streaming or digital
RE
04:26pMsci's all-country world index closes up 0.22% at record 721.10
RE
Latest news "Economy & Forex"