Tencent-Backed Logistics Firm Plans to Raise Over $500M in Hong Kong IPO

By P.R. Venkat

Tencent-backed J&T Global Express is the newest logistics-related firm searching for to faucet buyers’ urge for food in Hong Kong with a 3.92 billion Hong Kong greenback ($500.80 million) share providing.
The logistics service firm plans to promote 326.55 million shares at HK$12 every in an preliminary public providing, J&T Global mentioned Monday.

This follows final month’s submitting for a public providing by Cainiao Smart Logistics Network, Alibaba Group’s e-commerce logistics arm.
J&T Global, which began operations in 2015 in Indonesia, now gives categorical supply companies in 13 nations, together with international locations in Southeast Asia and Saudi Arabia, the United Arab Emirates, Mexico, Brazil, and Egypt.
The firm’s income for the six months ended June was US$4.03 billion, rising 18.5% in contrast with the identical interval a 12 months earlier.
Apart from Tencent, a few of its pre-IPO buyers embody private-equity companies Hillhouse Capital and Sequoia Capital and Temasek, Singapore’s sovereign wealth fund.
J&T Global expects shares to begin buying and selling on the Hong Kong change on Oct. 27.
The firm plans to make use of the IPO’s proceeds to increase its logistics networks, together with tapping new markets, in addition to analysis and growth.
Morgan Stanley, BofA Securities, and CICC are among the many banks appearing as joint sponsors for the IPO.
Write to P.R. Venkat at venkat.pr@wsj.com