J&T Global seeking nod for US$500 million IPO in Hong Kong: sources

COURIER company J&T Global Express is seeking Hong Kong stock exchange approval as soon as next week for its initial public offering (IPO), said people familiar with the matter.

A listing could happen as early as the end of October if J&T Global manages to get the green light from the city’s bourse, said the sources, who asked not to be identified as the information is private. The company is leaning towards raising about US$500 million from the share sale, which could value it at about US$12 billion, the sources said.

No final decision has been made and details could still change, the sources noted. A listing hearing with the Hong Kong stock exchange could be delayed, the sources said. A representative for J&T Global declined to comment.

J&T Global filed for a Hong Kong IPO in June, listing Morgan Stanley, Bank of America and China International Capital Corp as the joint sponsors. The courier plans to issue as many as 375.5 million shares in the city, indicated a filing on the China Securities Regulatory Commission last week.

Founded in 2015 in Indonesia, J&T Global operates express delivery services in 13 countries including most of South-east Asia as well as China, Saudi Arabia, United Arab Emirates, Mexico, Brazil and Egypt, according to its prospectus. The courier has more than 400,000 service staff globally.

In China, J&T Global is known for its aggressive pricing and expansion, challenging rivals such as SF Holding and Alibaba-backed YTO Express Group. J&T Global’s backers include Hillhouse Capital, Boyu Capital, Sequoia Capital China, Temasek Holdings and Tencent Holdings. BLOOMBERG