S.F. Holding Plans HK Listing

By Scott Murdoch

(Reuters) – China's largest express delivery company S.F. Holding announced on Tuesday its plan to raise up to HK$6.17 billion ($792.71 million) through a Hong Kong listing, indicating a revival in the city’s capital markets.

The Shenzhen-listed company is set to issue 170 million shares priced between HK$32.30 and HK$36.30 each, according to regulatory filings. The final price will be determined on November 25, with trading expected to commence on November 27.

Known for its flagship SF Express delivery business, S.F. Holding is often compared to FedEx and DHL. The listing has attracted ten cornerstone investors, including Oaktree Capital Management, which has committed to purchasing up to HK$204.8 million worth of shares.

Approximately 45% of the proceeds from the listing will be invested in expanding the company’s international operations, particularly in Southeast Asia. S.F. Holding has also allocated about HK$1.1 billion for potential acquisitions, joint ventures, or minority investments in other businesses.

The company initially filed for a Hong Kong listing in August of last year. Reuters noted that in May, it aimed to raise between $2 billion and $3 billion. In 2024, there have been $9.1 billion worth of new listings in Hong Kong, compared to $5.88 billion in 2023, according to Dealogic data. Although this is significantly below the 2020 peak of $51.6 billion, the expectation of lower global interest rates has sparked a revival of the listing market.

S.F. Holding's share price listed in Shenzhen has increased by 4.75% this year.

> ($1 = 7.7834 Hong Kong dollars)