Chinese trucking firm MingZhu Logistics eyes raising $13m in US IPO

Photo from MingZhu's website.

Shenzhen-based MingZhu Logistics Holdings, one of China’s fastest-growing trucking providers, has priced its initial public offering in the US, seeking to raise up to $13 million at the midpoint of its proposed range.

According to its latest filing, MingZhu plans to offer 3 million shares at a price range of $4-4.50 apiece. At the midpoint of the proposed range, the transportation company would command a fully diluted market value of $52 million.

The trucking company has applied to trade its shares under the ticker symbol “YGMZ” on the Nasdaq Capital Market and hired ViewTrade Securities Inc as sole bookrunner on the deal.

In its prospectus, the company claims to be the second-largest transportation company in the Guangdong region. It has been offering trucking services and logistics in Guangdong and Xinjiang since 2002.

MingZhu has a fleet of 139 tractors and 90 trailers, serving third-party logistics firms, freight forwarders, warehouse operators, and other supply chain service providers.

The company said it will use the proceeds of its IPO to acquire new equipment, improve operation through new information system for fleet management, hire additional personal, finance strategic acquisitions, and for general corporate purposes.

“With the proceeds raised, we intend to carry out the strategy that will allow us to reach our mission to become China’s largest and most trusted transportation company,” the company said in its prospectus.

The company posted revenue of $20.7 million in the nine months ended September 2019, an increase of approximately 5.9 per cent from the same period in 2018.

MingZhu Logistics’s filing comes as the trucking industry in China remains one of the largest in the world. According to data cited by the company, revenue of the trucking service market in the country reached 5.16 trillion yuan ($751 billion) in 2017 from about $694 billion in 2012.

China’s trucking service market is expected to hit $829.7 billion in revenue by 2021, on the back of the country’s e-commerce boom, the company added.

Recently, Full Truck Alliance, China’s Uber-for-trucks startup, announced plans to IPO after breaking even from May 2019, Bloomberg reported.

The company, which is backed by SoftBank Group Corp. and Tencent Holdings Ltd., said its improved financial performance dovetailed with its decision not to follow through on a plan to raise as much as $1 billion in a private round, Chief Financial Officer Richard Zhang was quoted as saying.

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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.