Intracity Logistics Firm GogoX Seeks Hong Kong IPO as It Eyes Asia Expansion

What’s new: Money-losing intracity logistics startup GogoX Holdings Ltd. is on course to list in Hong Kong as it looks to grow its footprint outside China.

The Hong Kong-based firm has won initial approval to go public, according to a post-hearing information pack filed on Sunday.

GogoX did not disclose how much it aims to raise, but said that the fresh capital will be used to enlarge its user base, strengthen brand awareness, develop new services, boost R&D capabilities and fund its investments and acquisitions in overseas markets.

The IPO will be sponsored by China International Capital Corp. (CICC), UBS, Bocom International and ABC International.

The background: Founded in 2013, GogoX says it provides services in more than 340 cities in the Chinese mainland, Hong Kong, Singapore, South Korea and India, with 26.5 million registered shippers and 4.9 million drivers in September. The company is 50.51% controlled by 58 Daojia, a Chinese local services platform.

In 2020, GogoX was the second-largest online intracity logistics platform in the Chinese mainland market with a share of 5.5% and the No. 1 player in Hong Kong with a 52.8% share in terms of gross transactions volume, the company said, citing data from market researcher Frost & Sullivan.

The company reported a net loss of 658.2 million yuan ($103 million) in 2020, compared with 183.8 million yuan in 2019 and 1.1 billion yuan in 2018, according to Sunday’s document.

Contact reporter Ding Yi (yiding@caixin.com) and editor Joshua Dummer (joshuadummer@caixin.com)

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