Caixin
Sep 08, 2017 04:01 PM
BUSINESS & TECH

Logistics Provider Best Sets IPO Range, Aims to Deliver $1 Billion

Best Inc. plans to issue 62.1 million American Depositary Shares at a price of $13 to $15 per share in a New York initial public offering. Above, a Best logistics warehouse is seen in Shanghai in November 2014. Photo: Visual China
Best Inc. plans to issue 62.1 million American Depositary Shares at a price of $13 to $15 per share in a New York initial public offering. Above, a Best logistics warehouse is seen in Shanghai in November 2014. Photo: Visual China

Best Inc., a logistics services provider backed by e-commerce giant Alibaba, could raise more than $1 billion from its upcoming New York initial public offering (IPO), making it the biggest such listing by a Chinese firm in the U.S. so far this year, according to its latest filings.

The company plans to issue 62.1 million American Depositary Shares (ADSs) in the offering, at a price between $13 and $15 per ADS, according to a document filed Wednesday with the U.S. Securities and Exchange Commission. An overallotment option could bring the total offering to 71.4 million ADSs, which would allow the offering to raise slightly more than $1 billion if the option is exercised and shares price at the top of their range.

The fund-raising target is consistent with Best’s previous filing last week, in which it raised its target to $1 billion from a previous $750 million.

Founded in 2007, Best, which is 27% owned by Alibaba Group Holding Ltd., offers logistical services, including supply-chain management and express delivery. Best said it is in good position for growth due to China’s exploding e-commerce market, which was worth $2.8 trillion last year and is expected to reach $5.8 trillion by 2021. Chinese are among the most enthusiastic embracers of e-commerce, as traditional brick-and-mortar retailing is far less established due to the country’s socialist past that lacked major national chains before the 1990s.

The company, which also goes by Best Logistics, reported 8.1 billion yuan ($1.25 billion) in revenue in the first six months of this year — more than double the amount from the comparable period a year earlier. Best said it incurred a loss of 625 million yuan in that period, slightly narrowing from a loss of 635 million yuan a year earlier.

The deal is being underwritten by Citigroup, Credit Suisse, Goldman Sachs, JPMorgan and Deutsche Bank.

Contact reporter Yang Ge (geyang@caixin.com)

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