Date
23 January 2017
ZTO expects to sell 72.1 million American depositary shares in the range of US$16.50 to US$18.50. Photo: China Daily
ZTO expects to sell 72.1 million American depositary shares in the range of US$16.50 to US$18.50. Photo: China Daily

ZTO eyes largest US listing by Chinese company since Alibaba

Logistics company ZTO Express is set to launch the largest US initial public offering this year.

It will be the biggest by a Chinese company after the US$25 billion listing of e-commerce giant Alibaba Group Holding Ltd. in 2014, Reuters reports.

ZTO’s share offering later this month could raise as much as US$1.5 billion.

China is the world’s largest express delivery market, with 21 billion parcels delivered in 2015, according to market research firm iResearch, cited in the listing prospectus.

That’s is approximately 1.5 times the total parcel volume in the United States.

ZTO expects to sell 72.1 million American depositary shares in the range of US$16.50 to US$18.50.

A consortium of investors including Hillhouse Capital Management Ltd. of Hong Kong and private equity firm Warburg Pincus LLC invested in the company in 2015.

Founded in 2002, ZTO is a major player in China’s quickly expanding e-commerce market. It delivers parcels for Alibaba and JD.com Inc., among others.

ZTO delivered roughly 14 percent of all parcels in China last year, according to its IPO prospectus.

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