SF Holding, one of the Chinese mainland’s largest logistics service providers, launched a share offering of about HK$6.17 billion ($792 million) on Tuesday, making it possibly the second-largest IPO this year.
The subscription is scheduled to end on Friday and the company will list on the Hong Kong Special Administrative Region’s exchange on Nov 27. Under its global offering, 170,000,000 shares at HK$32.30 to HK$36.30 per share will be offered.
READ MORE: Delivery giant SF Express moves a step closer to HK listing
According to its prospectuses, approximately 45 percent of the funds raised will be used to enhance international and cross-border logistics capabilities, 35 percent will be used to optimize its Chinese logistics network, 10 percent will go toward technology research and development and digital solutions, and 10 percent will be used for working capital and general corporate purposes.
SF Holding said its logistics network covers all mainland cities and more than 200 countries and regions worldwide. It debuted on the mainland’s stock market in 2017.
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According to Frost & Sullivan, in terms of revenue in 2023, the Shenzhen-based company is the largest player in the delivery and logistics industry in Asia, and the fourth largest globally.
The company also stated that its dividend payout ratio increased from 20 percent in 2017 to 35 percent in 2024. In the first half of this year, the dividend payout ratio was approximately 40 percent, with a special dividend. Its goal is to steadily increase the dividend payout ratio in the next five years, and the change in dividends will depend on factors such as profitability, business development plans, and the external financing environment.
