China’s SF Holding, the country’s largest express delivery company, said it has received regulatory approval for a second listing in Hong Kong, which it expects to complete in the next year.
It is the latest company to receive the go-ahead for a listing outside the mainland from the China Security Regulatory Commission (CSRC) after the regulator slowed the approvals process last year, creating a logjam.
The CSRC said more approvals for listings would come soon.
SF, which is currently listed in Shenzhen and is regarded as China’s equivalent to FedEx, initially filed for a Hong Kong listing in August last year. It said at the time it would use the proceeds to upgrade its logistics services in Asia, especially Southeast Asia.
The company plans to issue 625.5 million shares in the Hong Kong deal.
Reuters reported in June 2023 that a listing could raise between US$2 billion and US$3 billion. IFR reported in February that the deal could be worth US$1 to US$2 billion.
The company’s Shenzhen-listed shares are down nearly 8 per cent so far in 2024, underperforming a 4.6 per cent gain for the broader market and giving it a market capitalisation of 180 billion yuan (US$25 billion).
SF’s Hong Kong listing application lapsed in February, and it will need to make a fresh filing with the Hong Kong stock exchange.
The company did not immediately respond to a request for comment from Reuters.
