SF Holding Co. Targets HK$6.2 Billion in HK Listing
Zhou Jianxin
SF Holding Co., China’s express-delivery firm, is gearing up for a substantial initial public offering (IPO) in Hong Kong, aiming to raise as much as HK$6.2 billion (approximately $793 million).
The company is set to begin taking investor orders on Tuesday, with plans to list its shares on November 27. SF Holding is offering 170 million shares priced between HK$32.30 and HK$36.30 each. Notably, at the lower end of this price range, the offering would reflect a discount of about 29% compared to its Shenzhen-listed stock as of the previous Monday. Market Context and Investor Sentiment
Despite a year-to-date increase of approximately 5% in its share price, SF Holding’s market value stands at around 204 billion yuan ($28 billion).
In 2024, initial public offerings in Hong Kong have already raised over $9 billion, surpassing the total for the previous year. Yet, this figure remains significantly lower than the record levels seen in prior years, indicating a cautious approach from investors amid economic uncertainties.
Cornerstone Investors and Strategic Partnerships
SF Holding has successfully attracted approximately $205 million from cornerstone investors, which include notable names such as a unit of Xiaomi Corp., the smartphone manufacturer. Other cornerstone investors include Oaktree Capital Management LP, a subsidiary of Hong Kong property developer Sino Land Co., and a vehicle backed by the family of Henry Cheng, the billionaire chairman of New World Development Co. These cornerstone investors have committed to holding their shares for at least six months, providing a degree of stability and confidence in the offering.
Founded in 1993, SF Holding has established a comprehensive logistics network that spans all cities in China and extends to 202 countries and regions worldwide. This extensive reach positions the company as a key player in the global logistics market. For the first half of the year, SF Holding reported a profit of 4.76 billion yuan, underscoring its robust financial performance amid a challenging economic landscape.
Underwriters and Market Strategy
The IPO is being jointly sponsored by major financial institutions, including Goldman Sachs Group Inc., Huatai Securities Co., and JPMorgan Chase & Co. Their involvement not only lends credibility to the offering but also reflects the strategic importance of SF Holding in the logistics sector.
