Jitu Express-W (01519.HK) announced that the company plans to offer approximately 326.6 million shares globally, 32.6552 million shares in Hong Kong, China, and approximately 293.9 million shares internationally, with an additional 15% over-allotment option; recruitment will be held from October 16 to October 19, 2023 shares; the offering price will be HK$12.00 per offering share, and Class B shares will be traded in board lots of 200 shares each; Morgan Stanley, BofASE CURITIES and CICC are joint sponsors; Class B shares are expected to be listed on the Main Board of the Stock Exchange on October 27, 2023.
The company is a global logistics service operator. The company's express delivery business leads in Southeast Asia, is competitive in China, and continues to expand to Latin America and the Middle East. The company's express delivery services span 13 countries, including the largest and fastest-growing emerging express delivery markets in the world. The company's operations began in Indonesia in 2015. Building on the company's success in Indonesia, the company expanded to other countries in Southeast Asia, including Vietnam, Malaysia, the Philippines, Thailand, Cambodia and Singapore. According to Frost & Sullivan, the company is the number one express delivery operator in Southeast Asia in terms of parcel volume in 2022, with a market share of 22.5%. The company processed 2.5132 billion domestic parcels in Southeast Asia in 2022, compared with 1.1538 billion in 2020, representing a compound annual growth rate of 47.6%. In the six months ended June 30, 2023, the company processed 1.4383 billion domestic parcels in Southeast Asia, an increase of 18.4% from the 1.215 billion domestic parcels in the six months ended June 30, 2022.
The company entered the Chinese express delivery market in 2020 and processed 12.0256 billion domestic parcels in 2022. According to Frost & Sullivan, the company's market share reached 10.9% in terms of parcel volume. In the six months ended June 30, 2023, the company processed 6,445.6 million parcels in China, an increase of 15.1% from the 5,602.3 million parcels in the six months ended June 30, 2022. As of June 30, 2023, the company's network has fully covered seven countries and regions in Southeast Asia, and its geographical coverage in counties and districts in China has exceeded 99%. According to Frost & Sullivan, the company is also the first large-scale express delivery operator in Asia to enter Saudi Arabia, the United Arab Emirates, Mexico, Brazil and Egypt, providing support to the e-commerce platforms that the company cooperates with as they expand into new markets. In order to firmly seize cross-border logistics opportunities and strengthen connections between the countries it serves, the company has expanded its cross-border logistics services to include small parcels, freight forwarding and warehousing solutions.
The Company has entered into a Cornerstone Investment Agreement, pursuant to which the Cornerstone Investors have agreed, subject to certain conditions, to subscribe or procure their designated entities to subscribe for a certain number of Offer Shares for a total amount of approximately US$199.5 million (approximately HK$1.563 billion) at the Offer Price. Based on the offer price of HK$12.00 per offer share, the total number of offer shares to be subscribed by cornerstone investors immediately following the completion of the global offering will be approximately 130.2 million Class B shares.
Cornerstone investors include AspexMasterFund; JallionGlobalLimited; JoyousTempinisLimited; D1SPVJupiter(HongKong)Limited; D1SPVMasterHoldcoI(HongKong)Lim ited; Hidden Hill SPVVIII; SCGGFIII Holdco, Ltd. (wholly owned by Sequoia Capital Global Growth Fund III—Endurance Partners, L.P.); CELESTIALOCEANINVESTME NTSLIMITED (indirectly wholly-owned by SF Holdings (002352.SZ)); Dahlia Investments Pte. Ltd. (an indirect wholly-owned subsidiary of Temasek); Parallel Cluster Investment Limited (ultimately controlled by Tencent (00700.HK)) ; Eternal Earn Holding Limited (ultimately controlled by Tencent (00700.HK)); HuangRiver Investment Limited (wholly owned by Tencent (00700.HK)); JNRYIIIHOLDINGSLIMITED (ultimately managed and controlled by Hillhouse).
The company expects to receive approximately HK$3.5279 billion in net proceeds from the global offering. The Company plans to use the net proceeds raised from the global offering in accordance with the purposes and amounts set out below, which may change depending on the Company's evolving business needs and changing market conditions: approximately 30% will be used to expand the Company's logistics network, upgrade the Company's infrastructure and strengthen the Company's sorting and warehousing capabilities and capacity in Southeast Asia and other existing markets; approximately 30% will be used to develop new markets and expand the Company's service scope; approximately 30% will be used for research and development and technological innovation; and approximately 10% will be used for general corporate purposes and working capital needs.
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