Digital Freight Platform Logory Logistics Debuts on HKEx

Logory Logistics, a digital freight platform, was formally listed on the Hong Kong Stock Exchange on March 9. Following Full Truck Alliance’s itemizing within the US in 2021 and GOGOX’s itemizing in Hong Kong in 2022, Logory Logistics turned the third freight platform in China to go public.

Logory Logistics’ inventory opened at HK $2.81, a 3.1% decline from its difficulty value of HK $2.9. However, the inventory managed to shut at HK $2.84, leading to a market worth of HK $3.959 billion. The firm supplied 43.211 million shares globally at a value of HK $2.9 per share and raised roughly HK $125 million.

Founded in 2002, Logory Logistics is likely one of the earliest digital platforms serving the sphere of freeway logistics in China. According to the prospectus, as of the tip of September 2022, it had offered companies to greater than 11,600 shippers and a couple of.7 million truck drivers, and accomplished a complete of 36.2 million orders. Furthermore, the corporate’s gross transaction worth in recent times has made it change into one of many largest digital freight platforms in China.

According to the prospectus, Logory Logistics’ founders, Feng Lei and Du Bing, collectively maintain virtually 40% of the corporate’s shares. Shanghai Yunxin Venture Capital Co., Ltd., a wholly-owned subsidiary of Ant Group, is the biggest exterior shareholder, proudly owning roughly 14% of the corporate’s shares. Yunxin Venture Capital has collaborated with Logory Logistics on monetary fee companies and blockchain expertise.

From 2019 to 2021, the annual earnings of Logory Logistics was about 3.561 billion yuan ($511 million), 4.665 billion yuan and 6.297 billion yuan respectively, with a compound annual progress price of 33.0%. The web revenue was about -3.298 million yuan, 26.07 million yuan and 50.744 million yuan respectively. Affected by the epidemic, Logory Logistics expects its web revenue in 2022 to be a lot decrease than that in 2021.

For a very long time, the home highway freight market in China has been extremely fragmented, leading to an unequal distribution of data between shippers and truck drivers. As a response to this difficulty, digital freight platforms emerged, together with Full Truck Alliance, Logory Logistics, FOR-U, and G7e6. “After 20 years of entrepreneurship, from SaaS services to operations and ecological construction, we have truly embarked on a ‘difficult and correct’ road,” stated Feng on the itemizing ceremony.

According to China Insights Consultancy, the penetration price of digital freight platforms in the entire transportation market in 2021 is simply 10.7%. The establishment predicts that by 2026, the penetration price will attain 16.8%.

SEE ALSO: Full Truck Alliance Responds to Short Seller Report

On February 15, 2022, China promulgated the Network Security Review Method, which requires information processors who’ve greater than 1 million customers’ private info and plan to go public overseas, to use for a community safety evaluation. If the authorities consider that any information processing actions have an effect on or might have an effect on nationwide safety, they’ve the fitting to provoke a community safety evaluation on them. At current, Logory Logistics collects, shops and processes greater than 2,490GB of private details about digital freight companies, protecting greater than 2.7 million people. Therefore, it’s essential to observe and forestall improper dealing with or unauthorized entry to this information, as it could have adversarial results on the corporate.

Sign up as we speak for five free articles month-to-month!