A Chinese logistics company backed by Alibaba Group Holding Ltd. has filed for an initial public offering in New York.
Best Logistics Technologies Ltd., based in Alibaba’s hometown of Hangzhou, said on Monday it plans to offer its American depositary shares on the Nasdaq, The Wall Street Journal reports.
The company is seeking to raise US$700 million from the offering, Bloomberg said, although the amount could change as the company and select shareholders plan to sell stock in the IPO.
Best Logistics was valued at more than US$3 billion after raising US$760 million from a dozen new investors last year, the Journal said.
The company, founded by former Google China co-president Johnny Chou in 2007, provides domestic and international delivery services for China’s online shoppers.
Alibaba owns 23.4 percent of the company, making it the biggest shareholder, while Chou holds 14.7 percent.
In 2016, the company said its revenue increased 68 percent to 8.84 billion yuan (US$1.29 billion) from the year before.
It reported a net loss of 5.61 billion yuan, from a loss of 5.35 billion yuan in 2015.
China’s logistics business accounts for a quarter of the US$9-trillion-a-year global industry, according to Financial Times.
The company, which will be known as Best Inc. in the US, plans to use the IPO proceeds to fund its expansion plans, the newspaper said.
– Contact us at firstname.lastname@example.org