Chinese courier giant SF Holding gets regulatory nod for Hong Kong listing

China’s SF Holding, the country’s largest express delivery company, said it has received regulatory approval for a second listing in Hong Kong, which it expects to complete in the next year.

It is the latest company to receive the go-ahead for a listing outside the mainland from the China Security Regulatory Commission (CSRC) after the regulator slowed the approvals process last year, creating a logjam.

The CSRC said more approvals for listings would come soon.

SF, which is currently listed in Shenzhen and is regarded as China’s equivalent to FedEx, initially filed for a Hong Kong listing in August last year. It said at the time it would use the proceeds to upgrade its logistics services in Asia, especially South-east Asia.

The company plans to issue 625.5 million shares in the Hong Kong deal.

Reuters reported in June 2023 that a listing could raise between US$2 billion and US$3 billion. IFR reported in February that the deal could be worth US$1 billion to US$2 billion.

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The company’s Shenzhen-listed shares are down nearly 8 per cent so far in 2024, underperforming a 4.6 per cent gain for the broader market and giving it a market capitalisation of 180 billion yuan (S$33.6 billion).

SF’s Hong Kong listing application lapsed in February and it will need to make a fresh filing with the Hong Kong Stock Exchange.

SF did not immediately respond to a request for comment from Reuters. REUTERS