J&T Express raises $451m in Hong Kong listing

Photo credit: J&T Express

J&T Express has started trading in the Hong Kong Stock Exchange, marking its second-largest public offering this year.

The Indonesian logistics major raised over US$451 million from its IPO, issuing shares at HK$12 (US$1.53) apiece.

It will use the new funds to expand its network, improve existing infrastructure, and strengthen its sorting and warehouse capabilities. It will also enter new markets and invest more in R&D.

J&T Express was valued at US$20 billion in a 2021 funding round, where the company raised US$2.5 billion from backers like Sequoia China, Tencent, and SIG China.

Founded in 2015, J&T Express operates in thirteen countries, including Indonesia, Vietnam, Malaysia, Brazil, Saudi Arabia, and China. Its clients include merchants and consumers of major ecommerce platforms like Shopee, Lazada, Taobao, and Shein.

It has also been working with TikTok Shop in Indonesia before regulatory changes prohibited the social media firm’s ecommerce arm from operating in the country. It is still unclear how this could impact J&T Express’ local performance.

In its prospectus, J&T Express revealed that it registered a compound annual growth rate of 118% from 2020 to 2022. It also narrowed adjusted EBITDA loss by 36% within the same timeframe, which was mostly on the back of its strong performance in China.

The company previously planned on going public in the US but shifted its plans to Hong Kong. At the time, Chinese companies were facing scrutiny from regulators in Beijing over international listings.

While primarily an Indonesia-based firm, J&T Express has significant operations in China, buying Best Inc’s express delivery business in the country in 2021. It is also backed by several Chinese firms.

See also: Key takeaways from J&T’s prospectus: rapid China growth offsets slowing SEA numbers

Currency converted from Hong Kong dollar to US dollar: US$1 = HK$7.82.