Hong Kong to Witness its Second Largest IPO this year

J&T Global Express, an Indonesian courier services startup, announced on Oct 16 that it planned to raise up to HK$3.92 billion ($500.97 million) in Hong Kong's second-largest initial public offering (IPO) in 2023. According to regulatory filings, the company, which primarily operates in Southeast Asia and China, will issue 326.5 million shares at HK$12.00 each.

According to the prospectus, J&T will have a market capitalisation of HK$105.75 billion ($13.51 billion), which is in line with the valuation achieved during its most recent private fundraising round in May. The IPO valuation is significantly lower than the $20 billion J&T was valued at in a 2021 funding round. J&T had hoped to raise $1 billion in the IPO but reduced its target after discussions with investors.

J&T, which was founded in Indonesia in 2015 by two former OPPO executives, quickly became the largest e-commerce delivery service in Southeast Asia. In 2021, the company paid $1.1 billion for Alibaba-backed Best Inc's express delivery business in China, launching an aggressive China expansion.

The startup, which is now headquartered in Shanghai, is one of China's top five courier services. Since 2021, it has also been operating in Latin America and the Middle East. J&T's IPO is the second largest in Hong Kong in 2023, following the $675.2 million raised by Chinese spirits maker ZJLD Group in April.