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Chinese courier ZTO makes biggest U.S. IPO after Alibaba

Xinhua, October 28, 2016 Adjust font size:

Leading Chinese delivery service provider ZTO Express is now an NYSE-listed company traded under the stock ticker "ZTO," according to the company on Thursday.

The Shanghai-based company raised some 1.4 billion U.S. dollars and boasts a market value of over 12 billion U.S. dollars with the stock market debut.

It was the biggest U.S. IPO by a Chinese company after the home-grown e-commerce giant Alibaba raised some 21.8 billion U.S. dollars in 2014.

Most of the IPO proceeds will be used to buy more lands, facilities, equipment and trucks, according to its prospectus.

Founded in 2002, ZTO has seen its package throughput soaring to 2.94 billion in 2015 from the 279 million in 2011, the prospectus said.

The courier raked in some 4.2 billion yuan (619 million U.S. dollars) of revenues in the first half of 2016, a 70.8 percent year-on-year increase, with a profit rate of 24.9 percent.

Chinese delivery service sector is leaping forward on the back of a booming e-commerce market, with its players seeking public listing to shore up competitiveness in a vigorously contested market.

Yto Express, one of ZTO's main rivals, went public on Oct. 20, with other competitors SF Express, STO Express and Yunda Express preparing for listing. Endi