SYDNEY/HONG KONG, Oct 11 (Reuters) – Indonesian courier services startup J&T Global Express is aiming to launch its Hong Kong initial public offering (IPO) on Monday to raise $500 million, two sources with direct knowledge of the matter said, in the city’s second largest new share sale in 2023.
The sources could not be named as the information has not yet been made public.
J&T did not immediately respond to a request for comment.
The company had earlier aimed to raise at least $1 billion via a Hong Kong IPO in the second half of 2023, Reuters reported in February.
It is not immediately clear what valuation J&T is targeting in its IPO.
The company raised $2.5 billion at a valuation of $20 billion in 2021 from investors, including Boyu Capital, Hillhouse Capital Group and Sequoia Capital China and Chinese gaming and internet giant Tencent Holdings, Reuters reported at the time, citing people familiar with the matter.
The company was launched in Indonesia in 2015 by two senior executives of Chinese smartphone maker Oppo to serve Southeast Asia’s booming e-commerce market.
The founders used their experience in distribution to build up a logistics network across Southeast Asia targeting e-commerce operators.
It acquired Alibaba-backed Best Inc’s express delivery business in China in 2021 in a deal valued at about $1.1 billion in a major expansion into the Chinese market.
J&T’s IPO will be the second largest share sale in Hong Kong in 2023, after Chinese spirits maker ZJLD Group raised $675.2 million in April.
ZJLD’s shares fell sharply on their first trading day but are now trading about 11.3% above the offer price.
Hong Kong is enduring one of its weakest years on record for new share sales, with just $2.74 billion worth of IPOs in the first nine months of 2023, based on LSEG data.
Higher interest rates coupled with stricter rules from Chinese authorities on mainland firms wanting to list overseas has been attributed to the decline in the city’s IPO activity.
Morgan Stanley, Bank of America and CICC are J&T’s IPO sponsors, according to the company’s filings to the Hong Kong Stock Exchange.
Source: Market Screener