The company said it will receive HK$3.53 billion from the sale of 32.7 million shares to investors in Hong Kong, and from the 293.9 million shares that global investors will take up, according to an exchange filing on Thursday.
It received applications for 1.4 times the shares set aside for local buyers, and for 1.9 times the shares it had reserved for offshore buyers, it added. The shares were priced at HK$12 apiece.
The courier company could receive a further HK$567 million from an overallotment option of about 49 million shares to meet the demand from global investors, it said. The extra allocation option has not been exercised for now, it added.
The stock is set to begin trade in Hong Kong on October 27, under the stock code 1519.
The company positions itself as a low-cost service provider and was the top express delivery operator in 2022 in Southeast Asia, where it held 22.5 per cent share of the market in terms of parcel volume, according to Frost & Sullivan.
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The courier, whose Chinese name Jitu means “speedy rabbit”, predominantly operates in China and Southeast Asia, and has also expanded to Saudi Arabia, the United Arab Emirates, Mexico and Brazil.
Morgan Stanley Asia, Bank of America Securities and China International Capital Corp Hong Kong Securities are the overall coordinators of its Hong Kong IPO.
The proceeds will be used to expand the company’s logistics network and warehouse capabilities in Southeast Asia, the company said in its prospectus. About one third of the money raised will go towards funding expansions into new markets, while another third will go toward research and development.
Cornerstone investors who had subscribed to 39.9 per cent of total shares on offer, include Tencent, SF Express, Sequoia Capital, D1 Capital, Boyu, Aspex, Hillhouse, Temasek and GLP.
Dahlia Investments, one of the investors, is a wholly-owned subsidiary of Temasek, which is an equity shareholder of DBS Asia, one of the underwriting banks. As such, Dahlia is a client of DBS Asia, therefore J&T has applied and has been granted permission by the stock exchange to allow Dahlia to absorb shares.