By BAI Fan
J&T Express, the Southeast Asian delivery giant that plans to raise HK$3.5 billion (3.3 billion yuan, US$450 million) in a forthcoming HK IPO, has updated its prospectus.
J&T will offer 326.6 million shares at HK$12, with the listing set for October 27.
The offering will consist of 10 percent in Hong Kong and 90 percent internationally, with an additional 15 percent available in over-allotment options. Nine major investors, including Aspex Management, Boyu Capital, D1 Capital, GLP, Sequoia, SF Express, Temasek, Tencent, and Hillhouse, have committed to invest at least HK$1.5 billion.
Proceeds from the offering, about HK.5 billion, will be allocated for expanding the logistics network, upgrading infrastructure, enhancing sorting and warehousing capabilities, exploring new markets, expanding services, research and technological innovation, and general corporate purposes.
As of the first half of 2023, J&T operated 265 transit centers, and over 8,400 long-haul transport vehicles, and managed more than 18,600 pick-up and delivery points globally.
Established in 2015, J&T initially focused on the Southeast Asian market, entered China in 2020, and expanded into the Middle East and South America in 2022. In 2022, it commanded a 22.5 percent market share in Southeast Asia and a 10.9 percent share in China. By August 2023, its Chinese market share rose to 12.4 percent.
E-commerce has driven J&T's global expansion. The company provides logistics services to platforms like Shopee, Lazada, Pinduoduo, Taobao, and Shein. According to Frost & Sullivan, Southeast Asia's e-commerce market is projected to grow by around 20 percent each year until 2027.
In terms of financial performance, from 2020 to 2022, J&T's revenue doubled each year, without making a profit.
In H1 2023, J&T saw its net loss narrow by 37 percent to US$264 million.
