Tencent-backed J&T Express went public in Hong Kong, closing flat

October 27, 2023 8:10 pm

Global delivery firm J&T Express went public in Hong Kong, listing on the main board on Friday.

With a stock code of 1519, the logistics service provider aimed to raise HK$3.53 billion ($450 million) via this IPO, according to a press release of the firm.

The IPO was co-sponsored by Morgan Stanley, Bank of America Securities, and CICC, according to Chinese media outlet Caixin.

The firm plans to use the funds to expand its logistics network, upgrade infrastructure, and strengthen the company's sorting and warehousing capabilities and capacity in Southeast Asia and other operating markets, the press release noted(in Chinese). J&T Express also intended to expand its market with the fund, according to Chinese media outlet Caixin(in Chinese).

Bloomberg had revealed in a report in April this year that the firm initially planned to file an IPO in the U.S. as early as the fourth quarter of this year, raising from $500 million to 1 billion. On June 16, J&T announced adjustments to its listing plan, shifting its focus and listing destination to Hong Kong.

The firm closed flat today at HK$ 12 per share, according to Yahoo Finance.

J&T Express, established in Indonesia in 2015 by the former CEO of OPPO Indonesia, Jie Li. It swiftly expanded to six other Southeast Asian countries before entering Chinese market in 2020. According to data from Frost & Sullivan, as of 2022, measured by parcel volume, J&T Express is the top 1 courier operator in Southeast Asia.