Chinese delivery group ZTO Express seeks to raise up to $1.55b in HK listing

Employees work at a sorting centre of Zhongtong (ZTO) Express ahead of the Singles Day shopping festival, Chaoyang District, Beijing, November 8, 2015. REUTERS/Jason Lee

Chinese delivery group ZTO Express aims to raise up to $1.55 billion in the Hong Kong Stock Exchange, according to the company’s filings, the latest in a series of secondary listings to be carried out in the city this year.

ZTO Express, which is already listed in New York, begins its institutional bookbuild on Wednesday and will sell 45 million shares at a maximum price of HK$268 ($34.60) per share, the filings showed.

Final prices of the shares will be set next Tuesday and the stock is due to start trading in Hong Kong on Sept. 29.

In case of high demand, a so-called ‘greenshoe’ option can be exercised and an extra 6.75 million shares can be sold within the next 30 days by the banks which underwrote the deal, according to a term sheet seen by Reuters.

The option, if exercised, could raise an additional $233 million at the maximum share price.

Hong Kong retail shareholders will be able to bid for up to 5% of the company’s stock being sold, the term sheet showed.

Nearly $12 billion worth of secondary listings have been carried out in Hong Kong in 2020, according to Refinitiv data, even as the city struggled with the economic fallout of the coronavirus outbreak and anti-government protests.

The increase in secondary listings comes as the U.S. government is threatening to delist Chinese companies that do not meet U.S. accounting standards. A secondary listing in Hong Kong, bankers say, makes it easier for companies to switch their primary listing venue in the future.

ZTO Express shares fell by 1.1% to $31.37 on Tuesday in New York but the stock is trading about 34% higher so far this year.

Reuters

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.

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.