Chinese container shipping operator Zhonggu eyes $218m in Shanghai IPO

Photo: Reuters

Shanghai Zhonggu Logistics Co., Ltd, a container logistics solution provider, is planning to raise 1.48 billion yuan ($218 million) in an initial public offering (IPO) on the main board of the Shanghai Stock Exchange. 

The company, which kicked off its subscription exercise on September 16, has offered up to 66.67 million common shares at 22.19 yuan ($3.28) apiece. Its shares have been oversubscribed 7,496 times, according to a company filing on September 18. 

Zhonggu plans to use the IPO proceeds to purchase containers and container ships. 

Beijing-based investment bank China International Capital Corporation Limited (CICC) is the lead underwriter for the deal. Zhonggu will float the shares under the symbol “603565”.

With 120 container ships and tens of freight routes across the country, it offers door-to-door logistics solutions to enterprises. 

Global leading data intelligence institute for line operators Alphaliner ranked Zhonggu No. 13 on the list of Top 100 Carriers 2019, it said. 

Its annual revenues over the past three years stood at 9.9 billion yuan ($1.46 billion) in 2019, 8.08 billion yuan ($1.19 billion) in 2018 and 5.6 billion yuan ($826 million) in 2017. As of December 2019, it booked a net profit of 86 million yuan ($127 million), up 309 million yuan ($45 million) than the previous year, according to its prospectus.

Following the IPO, Zhonggu Shipping will remain the largest shareholder in Zhonggu Logistics with 63.13 per cent. Its other shareholders include SoftBank’s SBCVC (2.23%) and supply chain focused Eastern Bell Capital (1.18%).

SBCVC had made an undisclosed amount of strategic investment in Zhonggu Logistics in 2017.  Subsequently, Zhonggu Logistics has closed two rounds of funding from the state-backed Shanghai Free Trade Zone Equity Fund (FTZ Fund) in 2017 and Eastern Bell Capital in 2019. 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.