SF Intra-City’s Hong Kong IPO Set at $2.11 Per Share, to Raise About $260 Million

On Monday, Chinese logistics giant SF Holding’s intra-city delivery subsidiary SF Intra-City announced on the Hong Kong Stock Exchange (HKEx) that the offering price has been set at HK$16.42 ($2.11) per share.

Based on this offer price, after deducting the underwriting fees and other estimated expenses payable by the company in respect of the global offering, the net proceeds received by the company are approximately HK$2,031.3 million ($260 Million), assuming that the over-allotment shares have not been exercised. Trading of H Shares on the Main Board of the Stock Exchange is expected to commence on December 14.

On June 30 this year, SF Intra-City submitted an application for listing in Hong Kong. On November 14, it received approval of the listing hearing.

Established as a business division of SF Express in 2016, SF Intra-City was split to realize independent and corporate operation in October 2019, and launched the brand “SF Rush,” providing intracity on demand delivery services.

According to the prospectus released by SF Intra-City, the total number of orders from 2018 to 2020 was 80 million, 210 million and 760 million each year. As of May 31, 2021, there were more than 2.8 million riders registered on its on demand delivery platform, with 530,000 registered merchants and 126 million users.

SEE ALSO: SF Express’ Intra-City Subsidiary Passes HKEx Listing Hearing

The prospectus also shows that the revenue of SF Intra-City from 2018 to 2020 is 993.3 million yuan, 2.107 billion yuan and 4.8434 billion yuan each year. In the first five months of this year, SF Intra-City’s revenue was 3.046 billion yuan. With the growth of business, the gross loss rate narrowed significantly from 23.3% in 2018 to 0.9% in the five months ended May 31, 2021.

According to information reported by iResearch quoted in the prospectus, SF Intra-City accounted for an 11.0% market share in the industry according to the order volume for the 12 months ended March 31, 2021.