China International Capital Corporation and UBS have been tapped by SF Holdings as general coordinators and monetary advisors to deal with what is anticipated to be Hong Kong’s greatest preliminary public providing this yr.
The two funding banks might be becoming a member of joint sponsors and general coordinators Goldman Sachs (Asia), Huatai Financial Holdings (Hong Kong), and JP Morgan Securities (Asia Pacific) to type the courier big’s syndicate for the fairness sale, in accordance to a submitting with the change on 4 September.
Ranked as the most important built-in logistics supplier in Asia and the fourth greatest globally in a examine by Frost and Sullivan, the itemizing can be the second for SF Holdings, which is already listed on the Shenzhen change, and will increase up to $3 billion, in accordance to sources acquainted with the share sale cited in a Reuters report earlier this yr.
“We have dedicated 30 years to building our logistics network and investing in logistics infrastructure, which has given us a unique position today in Asia as an industry-defining player,” SF Holdings wrote in its draft prospectus. The firm added that, “We strive to become the go-to logistics partner of businesses and individuals worldwide, offering market-leading logistics services that empower their success,”
Global Expansion Plan
Citing Frost & Sullivan, the corporate mentioned it delivered 11.1 billion parcels in 2022, greater than an unnamed North America-based competitor which carried 6.2 billion gadgets. That quantity coincides with the reported supply quantity of prime US participant FedEx final yr. However, nearly all of its manpower continues to be based mostly in China.
While SF has been increasing abroad, primarily by means of partnerships, about 118,203 or 76.6 % of its 154,413 workers are in China, whereas one other 21.8 % work in different Asian areas.
The firm didn’t give particular numbers on how it could be spending its proceeds, however a portion of the money might be used to improve its Asia community, particularly in Southeast Asia. In October 2021, SF Holdings acquired a 51.8 % stake in Hong Kong-based Kerry Logistics for HK$17.6 billion ($2.3 billion) to develop its presence past China and create the most important specific supply supplier within the area.
The firm mentioned additional mergers and acquisitions are deliberate, though it didn’t specify any targets.
Profit Jump
Founded in Shunde, Guangdong province in 1993, for 2022 SF Holdings logged simply over RMB 7 billion in revenue after tax, which was a 38 % enhance over the RMB 4.4 billion it achieved a yr earlier. That revenue bump got here on the identical time that revenues rose to RMB 267.5 billion final yr from RMB 207.2 billion in 2021.
The firm’s lists 470 of China’s 500 largest enterprises as its purchasers and is thought for being the first provider for packages delivered on behalf of China’s RMB 44 trillion e-commerce trade. The firm can also be the sponsor of Hong Kong-listed SF REIT, which now holds a number of of the warehouse properties utilized by SF Express.
In a commentary revealed on 3 August, Fitch Ratings famous that if SF Holdings have been to proceed with a secondary itemizing by means of the Hong Kong inventory change, the corporate’s monetary profile can be “strengthened” as this may enhance its earnings and provide a possibility for natural progress because it expands operations abroad.
“SF’s business profile has remained strong as it is China’s leading express-delivery service company, while the company has expanded organically into non-express delivery businesses and made acquisitions, like the purchase of Kerry Logistics Network in September 2021. Its business diversification has improved, with 51 percent of revenue from non-express delivery businesses in 2022 compared with less than 30 percent before 2020,” Fitch mentioned within the word.
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